Metals are volatile over renewed fears new variants of covid. Some traders are sitting on cash or exiting quickly on their trades on uncertain economic impact of covid. Gold is firm and copper and crude oil sold off yesterday due to covid uncertainty. Copper should have risen as chances of labour strike is very high in key mines. Copper instead fell. Gold also fell in Asia today. Cash is the king in the mind of metal traders. Even bitcoin has fallen today. Just trade in the technical today and look for clues on short term direction.
Copper and industrial metals prices are getting affected by supply constraints news. Chinese government is directly intervening in industrial metals by some new measures every few days. Industrial metals will be very volatile in August.
Apart from technical, demand-supply expectation and demand-supply mismatch will dictate price of industrial metals till next week. Base metal traders are positioning themselves for a big demand in fourth quarter. There is expectation that world will be more or less covid free before Christmas and New Years. A slightest of indication that Q4 demand will be less results in closure of their base metal investment.
If gold has to rise to $2000 and trade over $2000 either in August or September then (a) US July jobs number has to come in lower side of expectation i.e. 450,000 nonfarm payrolls and ADP jobs (b) New variants of coronavirus creates havoc worldwide. (c) Short term traders have started ignoring inflation so I am ignoring the same.
Comex Gold December (intraday view) Current Price $1815.10
- Support: $1807.60
- Resistance: 1823.60 and $1839.60
- View: Gold has to trade over $1807-$1810 zone to rise to $1828.80 and $1843.90. Bearish trend will be there if gold trades below $1807 in London and USA to $1799.90 and $1792.60.
About the author
