-- Published: Friday, 8 May 2020 | Print | Disqus
Trade war, US unemployment, and even rise in US stock market are the reason for gold price to rise. Profit in stock trading is invested in gold. Lack of stock market margin pressure has resulted in more long positions in gold, silver, crude oil and copper. Liquidity is abundant. There is free money and lack of investment avenues. Businesses with cash are just using to trade and invest in stocks and commodities and even crypto currencies. Bitcoin rise can easily beat best stock investment this year. Everything is just short-term speculation. Going with the flow and momentum is the current way to trade and invest.
Speculation that LBMA may not meet gold delivery intentions this month is also adding to old price rise. Physical gold demand lags supplies.
Do not go by Asian gold demand. Indian gold demand and Asian gold demand is not the barometer to gold price at least till early June. The north India-South India divide on physical gold demand and gold jewelry demand will widen as most of north India is still under lockdown.
FOMC meets on 10th June and will be the key after today’s NFP. Lockdown worldwide will open in a big way by 10th June. If gold rises today and Monday then the bullish trend will continue till 10th June and thereafter crash. I am assuming that CVOID infections will top out in Europe, UK and USA by 10th June. Safe haven demand for gold can reduce sharply around 10th June. But if gold continue to rise on after 10th June then better sell all your stock investment and buy as much physical gold as you can. Big sustained recession will be there if gold continues to rise on or after 10th June. $2500 in gold will be just a price value and nothing else.
COMEX GOLD JUNE 2020 – current price $1726.90
· There is a mini double bottom around $1683. Gold can rise to $1775.40 as long as it trades over $1683.
· Short term bearish trend will be there only below $1683.
MCX Gold June 2020: (previous day close/CMP Rs.46085.00)
· View till 31st May: Gold can rise to 47531 and 49153 by 31st May if it manages to trades over 45340.
· Corrections upto 45340 will be a part of the bullish trend.
(Prices are in Indian rupees above)
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: Friday, 8 May 2020 | E-Mail | Print | Source: GoldSeek.com