Asian Metals Market Update for 21st April

April 21, 2025

Momentum is hyper bullish for gold and silver. Net long positions are rising with every price rise (in my view). Intention to buy on dips (in gold and silver) is historical. Gold and silver are seeing an increased share in one’s portfolio.

I am concerned about the pace of rise. A weekly rise of $70-$100 implies that the value of paper currency has been vanishing. You and I, real purchasing power is on the decline. We need to update our trading/investment skills to at least match the decline in purchasing power of our savings. There is too much information floating on social media. The Fool and the fugitive world over are all buying gold for $4000 to $4500 currently. Silver is undervalued. Silver looks like a good bargain even at the current price for a period of six months to five years.

Decline in the US dollar index, Fears and frenzy to shift assets away from US dollar-denominated assets, continued rise in investment demand for gold are driving the gold price (apart from traditional bullish movers).

I am also hearing on social media that the gold price will rise to $40,000 in the next ten years. These blokes who are commenting are not predicting how much the gold price will correct first. To me, $2700 is now the long-term support in case the gold price moves into a bearish trend. The gold price has a premium due to the trade war. Any cessation of the trade war will result in a big short-term crash in gold and silver. I am writing this as long-term gold investors exit their gold investment if and when there is a bearish trend in a few months.

There is no major US economic data release till 29^th April. It will be all about momentum for precious metals, non-ferrous metals, and the US dollar Index.

SPOT GOLD – current price $3383.40

14 DAY VIEW Spot gold has to trade over $3304.00 till 2^nd May to rise to $3532.10 and more.
Crash or sell off will be there if spot gold does not break $3440.20 resistance by 2^nd May to $3256.30 and more.
Intraday traders and jobbers need to remain on the sidelines and need to see if spot gold manages to trade over $3350.00 today and tomorrow.
Views are intraday,

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