Fundamental News and Triggers

• Gold rose to a one-month high yesterday as the dollar fell after PCE inflation data met expectations, with traders looking for fresh comments from Federal Reserve officials on interest rate cuts.
• As expected, the annual PCE inflation rate fell to 2.8% from 2.9% in December. According to the CME FedWatch Tool, markets currently expect the Fed to lower interest rates by 62% in June.
• Fed policymakers suggested earlier this week that rate decreases are expected to occur later this year. The Fed’s regular stream of speakers has underlined that there is no urgency to cut interest rates, and this news has been priced into the market.

Technical Triggers

• Gold prices have continued to trade in the range of $2000 (Rs 61200) to $2060 (Rs 62800) in the last month. Prices need a solid trigger to give either side a breakout.
• Silver prices have seen a sharp sell-off in domestic markets in the wake of falling discounts in domestic markets. As prices have been trading rangebound for the last two months. Strong support lies at $22.50 (Rs 69000).

Support and Resistance

 

 

 

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