Gold trades at all-time high price domestically

Fundamental News and Triggers

  • Gold prices have advanced nearly $70 in the last two trading days, breaking the range of $2000 to $2060, it traded in Jan and Feb. Prices got a boost from US New York Community Bancorp (NYCB) shares collapsing last week, growing the speculation of Banking crisis 2.0.
  • The exponential rise on Friday came as data revealed that US industrial activity contracted for the 16th consecutive month in February. Concurrently, the University of Michigan consumer poll revealed lower-than-expected morale last month.
  • This week we are seeing follow-through buying and investors jumping into the gold market with FOMO fear. Due to Rupee depreciation, gold prices have touched record high prices in India.

Technical Triggers

  • Gold price is finally out of the range and given a bullish breakout from the range-bound trading. Prices are expected to continue their bullish momentum till $2150 in the short term.
  • Silver prices also break the range and give a bullish breakout to $24. Prices are expected to continue positive momentum till $25 in the short term.
  • Long term bullish view is still intact with a target of $2400 (Rs 70000) in Gold and $30 (Rs 90000) in Silver in 2024.

Support and Resistance

 

 

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