WHY THE NEXT FEW DAYS WILL BE CRUCIAL

Earnings season aside, we will have two crucial events in the next few days.

The number one event will be the outcome of the OPEC "Production Freeze" meeting in Doha on 17 April. So far what we have is a constant recycling of the news and rumours to prop up the oil price. Investors who bought oil stocks and oil futures will soon know if their faith in them will return a handsome profit.

Not to pour cold water on the parade, but chances are slim that a disunited OPEC could do much. Nevermind the fact that Russia just increased it production to its highest in March. So if a production freeze does happen, so what? All were already producing at their record highs!

Iran has said that it won't join in the freeze but will continue to ramp its production. So while other have frozen their output, there still more oil coming into the market!

Possibly, irregardless of the result of the meeting, I believe it will be buy the rumour sell the news event. And it could cost those who placed their hopes on OPEC and Russia dearly.

The second event could be a game changer for gold.

According to various online news, China will launch a Yuan fix on gold on 19 April. Many have touted it as a changer and will eventually shift the gold trade from the COMEX and LBMA to the SGE. Why? Becuase unlike the over-leveraged COMEX and LBMA where paper gold is traded, the SGE will deal only in physical gold. So price discovery that is based on physical supply and demand will be allowed to happen, not the rinse and repeat commercial short and long trades in the COMEX and LBMA.

It is also a sign that China, being the world's largest gold producer and having the world's largest physical gold trade is surely exerting itself in the market.

Will it happen on time as reported on 19 April. Do be warned that this event has been postponed twice. I of course hope it will happen because the current gold trade in the COMEX and LBMA is a farce!

The above is entirely my opinion of course.