Fundamental News and Triggers

• As FED and ECB raised 25 bps last week, BOE is expected to hike by 50 bps (15–year high–Interest rates) to combat high inflation of 7.9%.

 

• Dollar Index has risen 3% in the last 15 days, on strong US economic data. Gold and Silver prices are getting hammered on dollar strength. Nonfarm payroll data tomorrow give set the further direction for prices.

• Even though Fitch’s lowering of the U.S. sovereign rating caused risk aversion in other financial markets, the yellow metal didn’t see much demand as a safe–haven. The decision was more driven by worries about fiscal spending that was out of control and political conflict over policy.

Technical Triggers

• Gold is trading in the range of Rs 59000 and Rs 60300, either side breakout will set further direction.

• Silver has broken important support of last week of Rs 73400, now prices are expected to downslide to 70400

Support and Resistance

 

 

 

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