Asian Metals Market Update: Feb-18-2020 By: Chintan Karnani, Insignia Consultants
Ability/inability of spot gold to trade over $1600 will decide the trend for gold for the next three week’s.Right now the trend is bullish.Silver will break free from $1740-$1810 trading range and form a new range.Copper, crude oil and nickel, boom or bust two days ahead.Right now trend is bullish for copper and nickel.
Japan, Eurozone, Singapore, are among the various nations (apart from China) which are on the verge of announcing new economic stimulus measures due to corona virus.Wages rates in most nations (globally) are expected to be flat.
Inflation is price rise.Cost of living will rise.
Stable income along with reduced savings rates will result in higher retail debt this year.Banks non performing loans (NPL) or non performing asset (NPA) as we call in India should see a sharp rise globally.Corporate profitability in certain labor intensive sectors will see a big fall.This will happen all due to just one corona virus.
Gold has to rise in the medium term to long term.There are can be an asset bubble as every central bank is taking measures to boost free money supply.Stocks, precious metals, industrial metals and energies and the US dollar Index all can rise at the same time.Common man never benefits from free money supply of central banks.Only risk taking increases.
Higher risk taking increases asset bubble.(Please note that the bullish trend in crypto currencies from December 2019 is not a bubble.It is just a tiny beginning of an unimaginable long term bullish trend.) Free money will ensure that bond yields trade with a softer bias.
Gold prices will correct if and when fears of virus reduce.Day traders and jobbers remain on the sidelines.
COMEX GOLD APRIL 2020 – current price $1589.80 · Gold has to break and trade over $1592-$1595 zone to rise to $1609 and $1633.80.
· Gold will crash if it does not break $1598 by tomorrow.· Overall trend is bullish as long as gold trades over $1570 this week.
NYMEX CRUDE OIL (March 2020) – current price $52.05 · Crude oil can rise to $53.50 and $55.70 as long as it trades over $51.20.· Sellers will be there only below $51.20.· Trend of crude oil from Thursday is the key.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.
Website www.insigniaconsultants.in .Prepared by Chintan Karnani Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above.Our clients do have positions on the trading strategies mentioned in the above report.Insignia Consultants does not have any branches in India.
Insignia Consultants does not have any marketing agents in any city in India.NOTES TO THE ABOVE REPORT ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED Follow us on Twitter @insigniaconsul1 PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
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