Fundamental News and Triggers

• As the Fed kept its fund’s rate constant for the sixth consecutive meeting, citing a strong labour market and a lack of success in fighting inflation, gold prices fell below $2300. Additionally, the central bank has said that it would not lower borrowing costs until it is more certain that inflation is gradually moving toward its target.
• The positive US economic data and persistent inflation have caused traders to lower their expectations for this year’s Fed rate cut.
• Concurrently, the World Gold Council declared that the first quarter saw a 3% increase in global gold demand to 1,238 metric tons, marking the strongest start to a year since 2016.
• The need for safe havens was also waning, particularly in light of recent rumours that Israel and Hamas were holding fresh peace negotiations. This increased the vulnerability of gold to rate-driven threat

 

Technical Triggers

• Gold prices have strong support around the $2280 zone, if prices sustain below this, it can fall to $2220.
• Silver has strong support at $26.5, if prices sustain below this, it can fall to $26.

 

Support and Resistance

 

 

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