“Closed economy” is the crux of Trump and his political moves. Overnight, the world cannot switch to a “Closed economy” from a “Free Trade World”. The global change that will come on the journey to a “Closed economy” will be bullish for industrial metals and precious metals. Paper currencies and electronic currencies and electronic forms of investment will be least favored for long-term investment. “Hard Assets” will now see a significant increase in long-term portfolio allocation by every person with significant savings.
India’s economy is less exposed to Trump's tax. Indian stock markets have shown that they are vulnerable to the Trump Tax and global developments. Trump wants zero customs duty on US exports to India. Growth in the Asian automobile sector will vanish. Asia is a hub for low-cost automobile spare parts. My real concern is unchecked genetically modified farm produce from the USA to India and Asia. These genetically modified farm produce creates severe long-term health issues for everyone.
Nation’s all over the world have started taking urgent steps to reduce on USA for growth. In the short term, nations will comply with Trump's directive. With the passage of time, once bilateral trade goes big, nations will take steps against Trump’s unilateralism.
China is taking steps to rely on domestic demand for growth and expansion. China has reduced its inflation target to two percent from three percent. China will continue to take more and more measures to reduce dependence on exports for growth. The US dollar index sold off yesterday. Euro-USD zoomed. There is a big short covering in euro/USD. German bond yields spiked. USD/JPY is trading below 150.00. The sentiment for the US dollar is bearish.
It remains to be seen whether the US February Nonfarm payrolls have a significant impact on the trend of gold, silver, and copper.
SPOT SILVER – current price $32.59
- Spot silver has to trade over $32.09 today to rise to $33.60 and more.
- A mild sell-off will be there only if spot silver trades below $32.30 after London opens and till day close.
- 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
- ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
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- PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
- PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
- THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
- ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
- ALL NEWS IS TAKEN FROM REUTERS NEWSWIRES.
- TECHNICAL ANALYSIS IS DONE FROM TRADINGVIEW SOFTWARE
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