Asian Metals Market Update for 4th September

September 04, 2024

There is fear of more correction in gold silver and copper. In my view, yesterday's fall was just a correction aided by some mild short-selling. The confirmed short-term bearish trend will be known only between Friday and Monday. That too only if US August nonfarm payrolls beat the best of street expectations.

Zinc and Aluminium did not crash. Copper sold off. This implies that copper can recover if zinc and aluminium do not sell off. Even silver falls will not be sustainable. The intention to buy/go long in gold and silver is very high. I believe some of these intentions will be executed today.

Chinese central bank continues to increase gold reserves at a hectic pace. This is the murmur in the street. India or Indian people are expected to use the current fall in gold and silver prices to start investing (in all forms). China and India are among the largest users of gold and silver.

India will soon make 9 Karat hallmarked gold jewellery mandatory

India will soon make hallmarking of 9-karat gold jewellery mandatory. This was prompted by Gen Z's preference for more affordable gold jewellery. Hallmarking by the Bureau of Indian Standards (BIS) was made mandatory for six purity categories—14KT, 18KT, 20KT, 22KT, 23KT and 24KT – in 2022. The official order is expected to be issued in a few months, following a final round of consultations with all key stakeholders, including organizations representing gold jewellery traders. “As part of this initiative, an instant certificate of purity will also be issued for 9 KT gold items at the time of purchase,”.

MY VIEW: Copper and steel with gold/silver coating is also being used increasingly to make jewellery affordable. I also see silver jewellery of 9 karat purity maybe next year-end as silver outpaces gold in percentage rise. The beneficiaries of this move will only be very large jewellery companies. I believe that centuries small and tiny shops (which rely mainly on handmade jewellery or high-purity jewellery) will close at an increasing pace. They do not have the money to invest in capex for 9-karat jewellery. There is zero support for them by the government or by various jewellery associations all over India.

(Read full in this link https://www.livemint.com/news/india/9-karat-jewellery-gen-z-gold-prices-chain-snatching-imports-11725267696217.html )

COMEX PLATINUM OCTOBER 2024

TODAY VIEW: Platinum October future needs to trade over $895.80 to rise to $928.00 and $940.00.
The next big wav of sell off will be there on a sustained fall below $895.80.

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