Asian Metals Market Update: Sell-off Is Over If Lows Hold

April 26, 2022

The technical correction in gold, silver, copper, and crude oil is over yesterday. The next big wave of sell-off will be there only if they fall below yesterday’s low. The message is simple: Only a slump in global stock markets will cause a sell-off in precious metals, base metals, and energies. Fundamentals are dictating the markets. It remains to be seen how long fundamentals will affect price moves. Yeah, most of the time, short-term price moves are purely speculative.

Trend after 3:30 pm Indian Time is the key for precious metals, base metals, and energies. Gold, silver, copper, crude oil, and natural gas have to trade over the current price after 3:30 pm Indian Time, and days close to be in an intraday bullish zone. Failure to do so will result in another wave of sell-off.

US economic data releases include Durable goods numbers. The number will have limited impact as the world focus is on interest rates. Anything can still happen. Intraday volatility will be very high.

This is a Pre FOMC week. All price fall/crashes in gold and silver till 4th May, FOMC meeting will be called a correction. If gold and silver continue to fall on or after 5th May, then a chance of a fall to $1784.30 (gold) and $2080.40 (silver) will be very high.

Spot Silver:

  • Silver has to trade over $23.55-$23.75 wider range till Friday to rise to $24.91 and $25.50.
  • The next big wave of sell-off will be there if silver trades below $23.55-$23.75 range.
  • Short sellers keep on booking profit till silver does not fall below $23.00 till next week.
  • New medium-term investors can start investing in silver in every small amount and average it out on every $1.50 fall (if any) for Diwali and Christmas.

NYMEX CRUDE OIL (June 2022)  

  • Crude oil has to trade over $96.40 to rise to $103.10 and $107.40.
  • Crude oil will crash only if it trades below $96.40 today.

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The world’s gold supply increases by 2,600 tons per year versus the U.S. steel production of 11,000 tons per hour.
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