Precious Metals clings higher after touching supports

Fundamental News and Triggers

  • The gold and silver prices have been rising consecutively for the last three days after last week’s US economic data revealed that inflation continues over the Federal Reserve’s objective.
  • January’s CPI and PPI exceeded expectations, reducing the likelihood of a Fed rate cut in March and May.
  • According to the CME FedWatch Tool, traders predict the Fed’s first 25 basis point rate drop in June 2024. As of today, investors are pricing in almost 100 bps of rate easing for 2024.

Technical Triggers

  • Gold prices have rebounded from important support of $2000 (Rs 61400) and again heading higher towards the higher end of the range of $2050 (Rs 63000).
  • Silver prices have rebounded sharply from $22 (Rs 69000) towards $23 (Rs 71000). It seems a short-term low is in place and prices are heading towards $24 (Rs 73000).

Support and Resistance

 

 

 

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