“FOMO or Fear Of Missing Out” trade in gold, silver, other precious metals, and base metals is back again. This implies a parabolic rise between thirty days to four months if the price stays at current levels for a week. Less physical, more speculative, more investment, more hedge against uncertain political times in USA and Europe.
If and when there is a burst once the FOMO trade gets over, there will not be a significant fall from the current price. The US dollar Index may have formed a long-term top. US interest rates may have formed a long-term top. Asian currencies will gain versus the US dollar but the trend of crude oil and energy prices will have an impact. Gold and silver are in a bullish zone for the rest of July and till the first week of August.
Falling inflation numbers in the USA accompanied by a mild slowdown in the USA and a rising US stock market is a recipe for increased diversification to gold/silver among retail traders and investors. Investment demand will rise in bullion in the next four months. If Trump is allowed to contest the US election and wins, then a massive crash will be there in gold and silver. If Biden is allowed to run for the US president and wins, then the gold price will rise over $800 every year for the next five years.
SPOT SILVER – (Current market price $31.20)
- 14 DAY VIEW: Spot silver needs to trade over $30.65 for the next two weeks to rise to $33.67 and $35.49 and more.
- Crash or sell off will be there if spot silver does not break $32.50 in the next two weeks.
Disclaimer
- The investment ideas provided is purely independent view point and are solely for collective learning and for academic interests. There is no commercial benefit accruing or have deemed to accrue to me out of providing such investment ideas.
- The investment ideas shared here cannot be construed as investment advice or so. If any reader is acting on these advices, they are requested to apply their prudence and consult their financial advisor before acting on any of the recommendations made here. I am not responsible to anybody in the event of profits and losses (if any) upon acting on such advice.
- I hope that our reader is aware about this well aware of the risk involved in trading in commodity derivative trading.
Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity future. I do not trade in CME future or OTC spot gold and spot silver.
NOTES TO THE ABOVE REPORT
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