Fundamental News and Triggers

• The gold price was trading close to all-time highs at $2160, driven by expectations that the Fed will lower interest rates in June. According to the CME Fedwatch tool, traders are now pricing in a 74% chance of a June rate cut, compared to around 63% at the end of February.
• As Fed chairman Powell told Congress in his semi-annual report the interest rate cuts would be necessary sometime this year, even though he also pointed out that inflation is not guaranteed to achieve sustainable levels of 2 %, yields on debt-bearing government bonds fell.

Technical Triggers

• Gold prices have cleared the resistance of the previous record high of $2150 (~Rs 65000) and now prices are heading higher towards the next psychological resistance of $2200 (~Rs 66500).
• 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 $2300 (~Rs 70000) in Gold and $30 (~Rs 90000) in Silver in 2024.

Support and Resistance

 

 

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