Fundamental News and Triggers

• After the U.S. manufacturing sector shrank for the eighth consecutive month in June, the gold market rebounded in short-term. Last month, the manufacturing ISM (Institute for Supply Management) index was 46%. The index was predicted by market consensus be at 47.2%.

• Interest rate traders currently expect the first cut in rates to occur in May 2024, peaking in late 2023. This could work against gold over the next 10 months as the dollar is expected to stay strong and non-yielding assets become less appealing.

 

Technical Triggers

• Gold prices have rebounded from strong psychological support of $1900 (~ Rs 57500), next resistance is $1950 (~ Rs 58700).

• Silver prices have very important support around $22(~ Rs 67000), which is a 50% Fibonacci retracement level of rally from $18 to $26. Prices have rebounded from that level heading towards next resistance of $23.25 (~ Rs 70500)

 

Support and Resistance

 

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