Fundamental News and Triggers

• The price of gold finds a floor as demand for the safe-haven asset is driven by growing geopolitical uncertainties. The “threat level” of geopolitical risk has increased in response to growing protests against Israel’s occupation of Gaza, Russia’s establishment of a new front in Ukraine, and concerns about a potential breakup in international commerce.
• In addition, gold is thought to be a viable alternative to the US dollar as a reliable store of value in cross-border transactions involving countries whose currencies are unstable.
• According to the CME’s FedWatch Tool, financial markets are presently pricing in over 65% odds of a rate decrease by the Fed in September 2024, which is another factor supporting gold prices.

 

Technical Triggers

• After a month-long consolidation phase, gold and silver prices are again catching up steam to touch previous highs. Gold has resistance around the $2380-85 (~Rs 72700) zone, once that is cleared, the next target is $2400 (Rs 73200) and the previous high of $2448 (~Rs 74000).
• While for Silver resistance zone is $29 (~Rs 85700), if prices sustain above this level, we can expect prices to touch the previous high of $30 (~Rs 88000) again.

 

Support and Resistance

 

 

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