Federal Reserve chairman views today and tomorrow at Jacksonhole will not have any trend-changing impact on precious metals and base metals or energies. One percent correction to two percent correction (if any) will be a part and parcel of the bullish trend. So do not worry if there is a horrifying sell-off. Instead, use it to increase medium-term investment. 0.25% hundred percent factored (for 18th September Fed meeting.). 0.50% over sixty percent factored. (for the 18th September Fed meeting.). My focus will be on clarity on the quantum of interest rate cuts till March 2025.
$3000 in a very short time for spot gold is the current sentiment. Hyperbullish sentiment has never before there in the past fourty years. In my view, gold can rise to $2965.30 (in the next twelve months) as long as it trades over $2263.00. Yeah, for the next two years, infinity is the price target for spot gold as long as it trades over $2263. The pace of rise may slow down after $3000, but still rise will still be there.
If gold rises then silver will continue to rise. But silver trading and silver investment is not for everyone. Crash or sell-off this month hit silver traders much more than gold traders. I have been warning that silver is not for weak-hearted and not for low-risk investors for the past twenty years. Patience and swift decision on exit and entry are tested to the core by silver in any asset class. No asset class tests more to traders/investors as much as silver does.
Day traders and jobbers need to remain on the sidelines (in precious metals, base metals, and energies) today and till the middle of next week. I will not surprised if there is a “V-shaped” bullish trend price or a bullish price move.
SPOT SILVER – current market price $29.09
- 50-day simple moving average: $29.23
- 100-day simple moving average: $29.12
- VIEW TILL 2nd SEPTEMBER: Spot silver has to trade over $28.21 till 2nd September to rise to $32.58. (i) Crash or sell-off will be there if Spot Silver does not break $30.84 by 2nd September. (ii) A daily close below $28.50 for three consecutive trading sessions will also trigger a very short-term bearish trend.
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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