Factors affecting metals markets
1. There will be position squaring and rebuilding before the Federal Reserve chairman's testimony before the US senate on 30th June. Powell will testify on coronavirus response.
2. Quarter end position squaring and rebuilding is still going on.
3. Trader's dilemma is to choose between economic progress or second wave of coronavirus. This has resulted in weekly reshuffling of portfolio.
4. End of US dollar and currency debasement will prevent gold prices from moving into a short term bearish phase.
Gold prices will fall if and traders choose economics over virus. Daily price moves, weekly price moves and monthly price moves is happening in waves. Day traders and weekly traders need trade with the wave. If you are trading against wave then use trailing stop losses or use bulls spread/bear spreads as hedge or hedge in options markets.
Why is crude oil rising or Why is crude oil demand good in Asia and all over the world? The shortest answer is closure of public transport, fear to use public transport has resulted in more people using own vehicles for going to office and do other work. For example in my city New Delhi, Delhi metro is closed. Petrol/diesel demand in New Delhi will be high as more and more Metro train users are forced to use own vehicles for within city travel. Every major city in the world is experiencing the New Delhi example. Global petrol and diesel demand will continue to rise. Opec continued crude oil output cuts to spruce up prices will ensure that Brent crude oil prices break past $50.00.
COMEX SILVER JULY 2020 - current price $1781.70
? Silver needs to trade over $1770 to rise to $1826 and $1866
? Sellers will be there below $1776.
? $1800-$2000 has been a tricky price range to trade in silver. Unlimited numbers of times silver has corrected sharply while trading in $1800-$2000 zone. Trade very carefully in this zone.
MCX SILVER JULY - current price Rs.48320.00
? Silver needs to trade over 48100 to rise to 49147 and 49447.
? Crash will be there if silver trades below 48100 to 47567 and 47054.
? Remain on the sidelines in silver till tomorrow.
(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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