Gold is bullish. Spot gold will rise very quickly on a break of $1810. Federal Reserve policy makers pledged more support by way of more bond buying. I never understood how printing more money leads to way out of a pandemic or a recession. Central banks are not addressing the core economic fundamentals of (a) Reduction in the cost of living like school fees and college fees. (b) Creation more institutions of excellence for future jobs for the baby boomers on or after 2010. (c) Preferring more local manufacturing over outsourcing of manufacturing. (d) Increased spending in creating more infrastructure in health. There other core economic issues which needs to be urgently addressed.
People were debt ridden before COVID pandemic. Nations were debt ridden before COVID pandemic. Global economy was standing on a paper support before COVID pandemic. Fuel has been added to the fodder of recession. Free and unlimited supply of money due to COVID has resulted in a stock markets roaring. All metals and energies are rising. Bond yields are rising. Investors and traders are fearless and opposed to fearful in March and April. Money distributed to be used as bailout money is invested for trading purpose. Sham and Ponzi companies are also getting bailout money in most nations with support from political mafia. "Investment", "Trading", "Speculation" by whatever name you call they also all chasing too investment. "Money money everywhere but nowhere to invest" is the situation. The end result will be a massive asset bubble which will be hard to prick.
Gold continues to make new historical high every week in most currencies. This trend will continue. Silver is on the verge of a massive rise. (akin to crude oil prices rising from -$40 to +$40 in less than three months). Copper and industrial metals will remain firm as mine workers get affected by the virus. It is time to increase investment allocation to hard assets and crypto currencies and digital currencies.
I see a sharp rise in food prices globally. More and more nations have started increasing their buffer stocks of food grains and other types of food. Uncontrollable food prices can only delay the hopes of any economic recovery.
Hongkong sanctions is also weighing on the markets and lending support to gold price today.
COMEX SILVER SEPTEMBER 2020 - current price $1864.50
? Silver needs to trade over $1832 today to rise to $1934 and $1996.
? Sellers will be there below $1832.
? Use a buy on dips strategy with a stop loss below $1766 for end July.
MCX SILVER SEPTEMBER 2020 - current price Rs.50075
? Silver needs to trade over 49566 to rise to 50837 and 51548.
? Sellers will be there below 49566.
? Crash will be there if silver does not break 50837 in the next seven days.
? Trend is bullish.
(prices 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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