Gold prices retreat after touching record highs

Fundamental News and Triggers

  • Gold prices retreat from recent highs as US Dollar strengthens. Following the Fed’s monetary policy announcement, there has been a decline in demand for gold and a risk-off sentiment prevails.
  • The neutral stance is still being digested by financial markets. Despite declining from higher levels last seen in the 1980s, Chairman Jerome Powell and his colleagues noted that the labour market is progressively cooling, the economy is strong, and inflation is still high.
  • They said they will cut interest rates, only when inflation is tamed. On the other side, they also said, inflation stays elevated and they will raise interest rates three times in 2024.

Technical Triggers

  • Gold touched a new high and again retraced. This retracement is necessary for a bullish market to sustain. Strong support lies at $2150 (~ Rs 65400).
  • Silver almost touched the $26 (~ Rs 77000) level, which is a very strong resistance area. Buy on dips on target of $27 (~Rs 80000) in the next few days

Support and Resistance

 

 

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