The fall in gold will clear some short term investors and also result in a big increase in long term investors. Both gold and silver are good long term investment opportunities. In the short term gold and silver will see a see-saw type prices moves like yesterday. Global financial markets have to stabilize for gold and silver to for a short term direction. In the very short term both gold and silver are directionless.
If gold trades below $1400 for a few days then it will imply that central banks have run out options. There can be extra ordinary measures like banning short selling in stocks etc.
Philippines has become the first nation to ban trading in stock, bonds and currencies. Other East Asian nations could follow the same if the corona virus spreads in a big way. In my view, banning trading is not needed to prevent corona virus. Pit trading is absent in Asia. Traders and investors can even trade during the quarantine period on mobile. Banning will only prevent short term hyper volatility. Trading in currencies and bonds are of national importance. Banning them for a few weeks will not affect the common man. However banning stock trading affect the common man as he cannot encash his investment. This has happened in Philippines. It can happen with any other nation. This is one theee reason why I have been asking everyone to invest in physical gold.
COMEX GOLD APRIL 2020 - current price $1497.30
? Gold needs to trade over $1480-$1490 zone to rise to $1550 and $1609.
? Sellers will be there below $1490 and crash only below $1440 to $1410 and $1366.
NYMEX CRUDE OIL (April 2020) - current price $30.10
? Crude oil needs to trade over $28.0 till tomorrow to rise to $36.00.
? Crash today will be there only below $26.00 to $21.00.
? Trend is down. But there can be sharp pullback rallies.
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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