Fundamental News and Triggers

• The price of gold rises to a two-week high as new selling of USD appears. Growing FED rate-cut bets keep US bond rates low and burden the economy.
• Because of the FED’s 2% aim, stagflation is predicted in the US this year, which is good news for precious metals.
• The weakening labour market circumstances in the US contributed to the weakening of the US currency in the global market and strengthened the argument for this year’s Fed rate decreases. The markets have priced in around 50 basis points of Fed rate cuts this year; the first is expected to happen in September.

 

Technical Triggers

• As suggested, if gold prices sustain above $2365 (Rs 72700), we are likely to see follow-through buying. Now it seems, gold prices can confront stiff resistance and remain capped near the $2400 (~Rs 73500) mark.
• Silver has formed double top formation around $32.5 (~Rs 96000) on daily charts. Important neckline support is of $30 (Rs 90000). If prices sustain below this, we could see, a sell-off towards $28.5 (~Rs 85500).

 

Support and Resistance

 

 

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