Whenever there was any possibility that gold will break past key resistance of $1840 then one or the other Federal Reserve speakers start saying of an early taper. Gold price sells on any word of early taper. Federal Reserve officials are indirectly preventing gold prices from a rise. It seems that they believe that a weaker gold price will reflect a robust US economy and vice-versa. Technically gold and silver are bearish.
Copper and industrial metal. Some View
US infrastructure bill if passed and quickly implemented will result in good demand for copper, steel and other industrial metals. Apart from Chinese demand, additional demand from USA after the passage of US infrastructure bull will affect industrial metal prices. Right now electric vehicle demand is the key driver for copper and industrial metals. (X) Higher demand is already factored in by copper traders and industrial metal traders. (XI) Industrial metal supply increase/decrease news will be key to price for next twelve months. New mine supplies will come up from Africa as well. Old left over mines are now being dug up as higher prices makes its profitable to get the metal. (XII) Supply disruption news results in the respective metal rising quickly daily. Demand and incremental demand for copper and all industrial metals will be continue to rise over the next three years. (XIII) The pace of rise of copper and nickel will change every quarter. The expected pace of rise of copper price will result in inflows/outflows from copper ETF. Copper and nickel will not see a one way secular bull run (as seen between October 2020 and June 2021). There will be correction, technical breakdown as well as breakouts. (XIV) Copper and nickel should be a part of everyone’s short term trading portfolio.
Comex Copper September: (previous day close/CMP $436.10)
Support/Resistance: $426.50, $430.20 & 440.20
View: (1) Key support till next week is at $417.30. (2) Immediate support is at $430.20. (3) Copper has to trade over $426.50-$430.20 zone till Monday to rise to $442.60 and $448.20. (4) Copper will rise very quickly if it manages to trade over $436.10 anytime till days close. (5) Copper will crash only if it trades below $426.50 after the release of US July nonfarm payrolls.
Boom or bust time for gold and silver till Monday. Gold and silver will rise quickly if July NFP matches ADP and comes in at or below 400,000. Anything is possible today.
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