Today could be another big rally day for gold and silver if they are able to trade over $1680 and $20.00. I am bullish on gold and silver today as well. I will prefer to use all the price fall (if any) to invest for the month end and early December.
The long-term technical correction is over in the last quarter. Gold and silver may have formed a multi-year bottom in Q3. Gold price and silver price (in every currency) will not fall below September lows for the rest of the year. It is buy on crash strategy in your nation for the rest of the year.
Laggards will wait for trend of US jobs numbers and then decide. Some will use small correction to make up for the missed opportunity. If gold and silver trade over $1700 and $20.00 (after NFP, PPI, and CPI) this month, then chances of $1880 and $24.00 will be very high before the end of the month.
Some of my clients were informing me that yesterday’s rise in precious metals was due to closure of Chinese markets. Asians are always buyers of bullion. I disagree with such a view. Gold and silver premiums are extremely high in China as well. Young Chinese are aggressively buying physical gold (for the first time in their life) after experiencing this year’s recession.
Last week saw historically high demand from UK and all over Europe in gold and silver. Price is bound to explode when there is a combination of demand from East and West.
Spot gold will crash it does not break $1730 by 14th October. Spot silver will crash if it trades below $20.00 for two consecutive days.
China is closed this week. There will be some knee jerk price moves in base metals if price rises this week. There will be a short covering rally in base metals energies if price rises this week.
Opec intends to reduce production by 1 million barrels a day. Nymex/WTI will not fall below $68 per barrel this quarter unless there is a long severe recession. I will prefer a buy on crash strategy this quarter as long as crude oil trades over $68. Get ready for a more than $30 trend changing one way price move in October month.
Spot Gold:
- Key support: $1674.00
- Key intraday resistance: $1706.40 and $1733.50
- Spot gold needs to trade over $1683.0 to rise to $1720.90 and $1753.30.
- There will be sellers only below $1683.
Spot Silver:
- Support: $20.35
- Resistance: $21.17
- Spot silver has to trade over $20.35 to rise to $22.32.
- Spot silver will rise very quickly if it trades over $20.97 after London opens.
COMEX COPPER DECEMBER 2022
- Copper has to trade over $335.80 to rise to $352.70.
- There will be sellers only below $335.80 to $329.70 and $325.50.
- Trend of copper ninety minutes after LME opens is the key.
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