Near zero bond yields globally will ensure that sharp corrections in gold will be used to invest for the short term as long as term. Guarded optimism in silver at the moment.
One needs to remain on the sidelines till Monday. Clear picture of the spread of corona virus in USA and India will be known by end of next week. USA and India are two big consumers of goods and services. A big global slowdown will happen if these two nations are affected.
I do not expect Federal Reserve to cut interest rates once again on 17-18 March meeting. If the corona virus spreads infects a large population within USA and causes short term joblessness by 17th March, then only Federal Reserve will be forced to cut interest rates by 0.25%. Federal Reserve decision will be taken virus situation on 17th March. There will not be any pre-determined decision.
US February ADP numbers were good. Corona virus has started inroads in USA in the last week of February. February jobs numbers in USA will not have any corona virus impact. March numbers (which will be released in April) will have an impact.
If the corona virus spreads in a big way in India (which I expect as the government has reacted very late on travel bans and ban of tourist inflows from virus infected nations.) then physical gold demand in India will be low to zero. However investment in gold ETF in India will see another big surge.
COMEX GOLD APRIL 2020 - current price $1640.35
? Gold needs to trade over $1627-$1633 zone to rise to $1656 and $1685.
? Sell off will be there if gold trades below $1627 to $1603.10 and $1576.80.
COMEX COPPER MAY 2020 - current price $259.70
? Copper needs to trade over $256 to rise to $265.
? Crash will be there below $256.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Websitewww.insigniaconsultants.in. Prepared by Chintan Karnani
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NOTES TO THE ABOVE REPORT
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