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The copper market that was way oversold future concerns about the Chinese economy have flipped around in dramatic fashion as the potential for a squeeze play is happening.
The difference in supply and price between the LME and the Chinese market is causing speculators should buy the copper futures driving them to a much higher price. But it’s like everything now. It looks like this reversal and prices remind you of the shootout at the OK corral. It’s high noon on copper prices.The copper really seems to inspire a lot of the precious metals as well gold turned around in dramatic fashion and unless the multitude of fed speakers changed the momentum gold could be in for a big up move, we are still targeting $3000 an ounce for gold this year.So today these are the times for gold traders to beware.At 9:00 we have fed president Patrick Harker speaking as well as Susan Collins gold traders must beware again when Richmond Fed President Tom Barkin speaks at 11:40 AM and again at 12:30 when Fed President Jeffrey Schmidt speaks.And finally, at 12:35 Fed Governor Michelle Bowman speaks.
The focus of these talks will be on interest rates. The market already knows it we’re not going to see as many rate cuts as a market would have liked to have seen still if they are relatively nuanced and their speech gold should make an incredible run if they come out ultra hawkish then beware of a pullback.
Get Federal Reserve or no Federal Reserve we still believe that gold fundamentals are extremely bullish’ s central bank buying around the globe will continue to be strong and inventories have gold around the globe are relatively tight.If we do get a Fed-speak inspired break, it is probably time to pick up some option plays.
RTI reported that in India gold prices increased Rs 118 to Rs 77,865 per 10 grams in futures trade as speculators created positions on a firm spot demand. On the Multi Commodity Exchange, gold contracts for February delivery traded higher by Rs 118 or 0.15 per cent at Rs 77,865 per 10 grams in a business turnover of 11,431 lots.
The silver formation looked very bullish as well we could see the price of silver doubled this year. Why we will see some volatility is probably wise to start putting on some option strategies.More By This Author:Declare Emergencies, Dollar EmergencyEnergy Report: National Economic EmergencySilver Dollar – Manic Metals Report