-- Published: Monday, 4 May 2020 | Print | Disqus
Gold will remain firm on restarting US China trade tensions. Pre USA presidential drama has started. Trump has started blaming china for corona virus. Trump has restarted the trade war. The trade war is a political drama by Trump to divert mass attention from late reaction to CVOID crisis. There will be more such politically motivated things by Trump. Gold will remain firm till November. There can be sharp corrections in gold. There can be some long periods of wider range consolidation in gold price. Pre US presidential election months (beginning from May) will prevent gold prices from moving into a short term bearish zone.
To me June is big month for global economy and CVOID spread/unspread. Optimism (that CVOID will be controlled soon) is driving stock markets into a big rally and industrial metals are also rising. Towards the end of May (after Ramadan ends) any significant signs of continued global lockdown can result in a big crash in stocks and industrial metals.
Gold inflows into exchanged traded funds rose last week, but some large sellers in comex futures prevented gold big price from a big rise. Gold jewelery demand is zero.
Gold prices can see a sharp sell off if and when traders switch from gold into crude oil and stocks. I am looking at inverse correlation between gold and crude oil this week.
COMEX GOLD JUNE 2020 – current price $1709.25
Bullish over $1695.40 with $1717.30 and $1749.90 as price target.
Bearish below $1684.40 with $1666.00 and $1647.80 as price target
· Gold will break free from $1680-$1740 range and form a new range by Wednesday.
· As long as gold trades over $1690-$1695 zone it can rise to $1757.
MCX Gold June 2020: (previous day close/CMP Rs.45541.00)
1. Intraday View: Gold can rise to 46037 and 46607 as long as it trades over 45400.
2. Weekly View: Key support is at 44602. Gold can rise to 46607 and 47687 this week as long as it trades over 44602. Gold will move into a short term bearish phase only if it trades below 44602 this week.
3. Watch the direction of the rupee against the US dollar this week. Significant gains of Usd/inr can will result in gold testing 44602 key support.
4. Day traders and jobbers remain on the sidelines.
(prices are in Indian rupees above)
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NOTES TO THE ABOVE REPORT
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-- Published: Monday, 4 May 2020 | E-Mail | Print | Source: GoldSeek.com