Bullion prices advance as dollar weakens after FED hike

Fundamental News and Triggers

As the central bank hinted at a data-driven strategy for future rate hikes, the price of gold and silver rose slightly. However, the price of the yellow metal continued to trade in a narrow range as it had for the previous two weeks, and it struggled to stay below the Rs 60000 level, which is predicted to signal further gains.

The dollar yesterday after the FED raised interest rates by 25 basis points as anticipated and moderated its tone regarding a potential U.S. recession. However, citing strength in the labour market and relatively stable inflation, the central bank also left the door open to a potential increase in September.

Technical Triggers

Gold prices need to sustain above Rs 60000 to continue their bull run towards a new high.

 Silver has started its new bull run, crossing all major resistance. The next level to watch for is $26 (Rs 78000), if that is cleared, we can see prices touching $30 (Rs 88000-90000) as the next target.

Support and Resistance





Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above-mentioned opinions are based on the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or an implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purpose and are not to be construed as investment advices.


Share on