-- Published: Monday, 6 April 2020 | Print | Disqus
The recent range trade in gold and silver will be broken soon and a new range will be formed. Physical gold supplies are expected to rise with Swiss gold refiners opening. I am doubtful whether they will be able to meet the current demand. Gold mines supplies are less. Russia has said that it’s central bank will not buying gold at the moment. Russia will sell it mined gold in the market. Russia’s gold news prevented spot gold from breaking past $1700 last week.
Comex gold future and spot gold difference is around $26. This is still very high. The huge gap also indicates supply shortages. People are forced to buy gold futures due to physical gold supply shortage.
Keep a close watch on political developments in UK. Prime Minister Boris Johnson has been hospitalized. I just hope he recovers quickly. Patriots need to recover quickly. Any political instability in UK will result in cable falling fiver percent against the major currencies first. Right now one needs to be neutral in UK pound.
Forget all news and just trade in technical in all your investment. If you have invested in stock markets and have massive mark to market (MTM) losses, then you need to wait for next year. If you have a S.I.P in stocks then continue with same till next year. (Do not discontinue SIP’s). The next major Bull Run in stock (which should start after nine months) will be the one never seen in history. BUT before that it is difficult to predict the bottom.
Even if the stock markets rise, the debasement of currencies will continue. Gold and silver will continue to rise (on overall basis) irrespective of what happens.
There will be changes the in the political world. US presidential elections will be in November. Trump will try to take advantage of corona virus crisis by exaggerating the same to a doomsday and then bringing down the causalities drastically and win sympathy of American voters. Trump will try to show that he is the “Noahs Arc” for the American voters to win the US presidential elections.
The end of the US dollar and so called paper currencies is on the horizon. Since 2003, my key reason for investing in physical gold and physical silver is the expectation of a steady decline in the purchasing power of the paper currencies. The corona virus pandemic will only accelerate the end of the journey of paper currencies which started after world war one.
COMEX SILVER MAY 2020 – current price $1453.30
· Silver needs to trade over $1400-$1410 zone to rise to $1560 and $1650.
· Sellers will be there if silver trades below $1430 and crash below $1380.
NYMEX CRUDE OIL (April 2020) - current price $26.60
· Crude oil can rise to $30.20 today and $36.00 and more this week as long as it trades over $24.00.
· Crude oil will crash and may be even fall below $22.00 only if there is not deal between USA-Saudia Arabia and Russia.
· In my view, nymex crude oil has formed a long term bottom and will slowly rise to $52.00 over the next few months.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Websitewww.insigniaconsultants.in. Prepared by Chintan Karnani
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NOTES TO THE ABOVE REPORT
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-- Published: Monday, 6 April 2020 | E-Mail | Print | Source: GoldSeek.com