There is a massive convergence of short term moving average and long term moving average in gold. This indicates that gold price will see massive $70-$100 one way price move anytime before Friday. Either you will get the best profit this year on gold trade or your capital will be eroded on a bad trade. Day traders and short term traders of gold have to be careful. Silver is s buy on crashes strategy irrespective of the US jobs number and FOMC.
Indian gold and silver demand (in all forms) this festive season is at a multi decade high. This has prevented global gold price from crashing. World Gold Council (WGC) data indicates that almost every central bank has been increasing its gold reserves since the global covid pandemic began last year. Overall for next year gold and silver are bullish. Short term price crashes are a part and parcel of the long term bullish trend.
Taper has been factored in by the markets in today’s Federal Reserve. US October private ADP jobs number (before FOMC meets today) can have a far bigger impact than taper in precious metals market. ADP is at 5:45pm Indian time. For gold and silver price to crash US October ADP jobs number has to come in at or above 600,000.
India’s forex markets are closed tomorrow and will reopen on Monday. De-hedging demand by gold importers will effect usd/inr spot price today as well as physical gold price today. Peak gold and silver demand in India (for 2021 calendar year) is more or less over. India’s gold importers will place purchase orders based on sales this week. (sales will continue till bhaiya dooj on Saturday.) I will call it restocking gold demand. I expect India’s gold restocking demand to be a historical one as well next week.
COMEX GOLD DECEMBER 2021 – current price $1781.20
- Gold has to trade over $1766.10 till tomorrow to rise to $1826.40.
- Gold will crash and move into a short term bearish phase if and only if $1835 is not broken by next week. Fatigue and resentment will come in if gold price does not break $1835 by next week.
- Today gold will crash only if it trades below $1766.10 after London PM Fix.
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