Russia-Ukraine tensions will need to be closely watched into next year. The real battle is the energy war. USA wants to sell its shale gas produced natural gas in Europe and rest of the world under the climate change measures. The reality is that shale gas is the biggest disaster for mankind as it reduces ground water levels and massive deforestation. Russia-Ukraine tensions has been deliberately created to prevent Europeans from buying cheap Russian natural gas. Everyone says that natural gas is the energy future of the world. Natural gas will replace crude oil in the next decade. This year’s rise in natural gas price is equal to crude oil at $17 in 2003. A one thousand percent rise in natural gas in the next ten years is very much possible. Higher energy price equals hyperinflation and stagflation and a reason for gold price to continue its rise. Buying far dated natural gas call options (December 2022 and more) is also a good investment strategy.
After 20th December Chinese local demand for industrial metals will be the key. Chinese New Year is on 1st February 2022. Chinese people will start buying from 15th January 2022. Chinese local demand will be at a historical high IF there is no covid virus induced lockdown. A firm Chinese demand will imply higher copper price and higher industrial metal price. Precious metals demand from China in January month will be at a record high (between 15th January 2022 and 28th February 2022) if there is no fear of coronavirus.
There are no major US economic data releases today. It will be a technical trade. Gold has to trade over $1790 to continue its bullish trend. Silver is a buy on dips strategy as long as it trades over $21.50. Incoming news on omicron variant and its impact can shake prices.
NYMEX CRUDE OIL (January 2022) - current price $71.96
- Crude oil can rise to $74.60 and $77.30 as long as it trades over $69.30.
- Today crude oil will crash if it trades below $69.30.
- It may not be a one-way price rise in crude oil. There will be corrections as well.
LME Copper Spot: (CMP $9559.25)
- Daily Support: $9442.80
- Daily Resistances: $9623.10 and $9700.00
- Copper has to trade over $9480 to rise to $9700 and $9846.
- There will be a sell off if copper trades below $9480 to $9407.70 and $9330.50.
- Copper will break from $9300-$9700 consolidated trading range and form a new range soon. Ability/inability to trade over $9700 will decide the fate of copper price.
LME Nickel Spot: (CMP $20202.50)
- Daily Support: $19853.50
- Daily Resistances: $20480.00 and $20794.00
- Nickel has to trade over $19853.50 to rise to $20794.
- There will be sell off if nickel trades below $19853.50 to $19540 and $19152.50.
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