Fundamental News and Triggers

• At the end of a two-day meeting on Wednesday, it is widely anticipated that the FED will increase interest rates by 25 basis points. Markets appear to have largely factored in the rise, but traders are still unsure of what the FED will signal regarding the next policy. The likelihood that the bank will maintain rates at current levels for the remainder of the year is priced into the market, according to FED Fund futures prices, which is good news for bullion.

• Furthermore, to support the yuan, Chinese state banks once more sold dollars. After members of the Politburo, the Communist Party’s highest decision-making body pledged to intensify stimulus efforts in support of an economic recovery, sentiment toward China improved.

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

 

 

 

 

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