The next seven trading sessions is very crucial for gold and silver. (till 19th August). Why? Traders have got used to making quick profit by going long at any price. Price rise has more than doubled the corrections in the past one month. Traders and investors have got used to making big profit and quick profits. Now envisage a scenario where gold and silver consolidate in a wider trading range for seven trading sessions. The so called “jump with the flow traders” will get nervous or will loose patience and switch to alternate investment. Gold prices will only fall, move into a short term bearish trend or correct sharply if and only if prices consolidate in a wider trading range for a very long period of time. Minimum two weeks.
Let me be very clear. I expect to silver to make the first pit stop at $55.00 and nothing before. The pit stop is a sharp correction. Silver at $29.00 is still a great long term investment. I do not expect silver to fall below $20.00 till Diwali. (mid November). Another clarity, gold is in a bull run. $1850-$1900 is now the long term lower base with infinity as price target. Corrections as near to $1850-$1900 (if any) should be used to make long term investment. Buy some far dated call options. Buy far dated futures, buy lots of physical gold, investment in gold bonds (India) or gold ETF investment.
Indian can invest in silver by way of physical silver or buying silver in electronic form. India does not have silver exchange traded fund (ETF), silver bonds etc. I am sure that silver ETF (In India) is on the verge of getting launched anytime soon. Silver ETF, whenever it is launched in India will generate massive investment demand and add to the current global supply shortage. More and more nations are the verge of launching silver ETF and silver investment products. Spot Silver at $250.00 in the next three years will be there. I am more than confident.
There are buyers on dips in gold and silver. US dollar Index trend and developments in US senate over stimulus cheques will be closely watched.
COMEX GOLD DECEMBER 2020 – current price $2028.40
- Gold needs to trade over $2003 (till Friday) to rise to $2064.00 and $2114.00.
- Sell off will be there only if gold trades below $2013 today and crash only if gold trades below $2003 in USA session.
- Day traders and jobbers remain on the sidelines.
COMEX COPPER SEPTEMBER 2020 – current price $287.02
- There is a mini double bottom at $278.00. Copper can rise ti $305.00 and $320 (by next week) IF it trades over $278.
- Copper needs to trade over $278.00 for a few days (till 31st August) to be in a short term bearish zone) and fall to $272 and $263.10.
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