-- Published: Thursday, 27 February 2020 | Print | Disqus
Gold should start another wave of rise. Silver will now behave like a precious metals and not an industrial metal. Even USA is preparing for corona virus outbreak. Lack of demand from global tourism industry should result in crude oil prices sliding. Next week will be a big week for bulls and bears of gold. If economic data releases wins then gold prices will correct more. If corona virus wins then gold prices will break $1700.
The correction in gold is healthy. Most people believe that it will be a “V” shaped global recovery. A “V” shaped recovery (if any) implies that either gold prices have formed a medium term top or that a medium term top will be formed in March. Gold will crash or sell a selloff or move into a bearish trend if $1730 is not broken.
It is “drone money” time. I am not using the phrase “helicopter money”. “Drone Money” is basically giving free money to the areas affected by corona virus. Every central bank is sending drones full money in the cities/regions affected by corona virus. They believe that by sending “drone money” everything will fall in place. Slower growth will more than make up using “drone money”. In my view central banks will only create asset bubbles. Risk taking will increase. Boom-bust scenarios will be there every now and then in different asset classes and different business sectors. Even if gold prices crash, the “drone money” will ensure that recovery from the lows (if any) will be equally swift.
Fundamentals are bearish are for gold. Indians and Chinese are not buy gold jewelry or physical gold. The pre holi inauspicious period or “padwa” as we Hindus call will also prevent gold jewelry buying from next week. Gold prices are dependent on investment demand which has risen for over twenty five consecutive days.
COMEX SILVER MAY 2020 – current price $1795.50
· Silver needs to trade over $1744 for the next two weeks to rise to $1960.
· Crash will be there only if silver trades below $1744.
MCX Crude oil 19th March 2020: (previous day close/CMP Rs.3546.00)
· Crude oil can fall to 3290 by next week if it trades below 3514.
· Key long term support is at 3514. Watch 3514 all the time.
(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: Thursday, 27 February 2020 | E-Mail | Print | Source: GoldSeek.com