Fundamental News and Triggers

• The precious metal remained on edge ahead of January’s US inflation data, which may have an impact on interest rate expectations. If inflation remains stubbornly high, the opportunity cost of owning gold rises because the Federal Reserve is more likely to adopt a hawkish attitude.
• Fed policymakers have argued for higher interest rates until they are confident that inflation would return to the 2% target. The Fed’s hawkish narrative is based on the labour market’s resilience and strong consumer spending. Fed policymakers recognised that the fall in inflation statistics is promising but inadequate to loosen the tight interest rate stance.

Technical Triggers

• Gold prices are still trading in the range of $2010-2075 (Rs 62000 – 64000) from last one month. Prices need to give a breakout of this range to start a new trend.
• Silver prices have still trading in the range of $22 – 23.50 (Rs 70000- 73000) for the last month. Prices need to give a breakout of this range to start a new trend.

Support and Resistance

 

 

 

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