Fundamental News and Triggers

• Reduced Fed lower rate bets weaken gold and silver prices and attract new sellers. The downside should be restricted by geopolitical threats and European political unpredictability.
• In anticipation of the Federal Reserve cutting interest rates in September, investors have begun reducing their bets. This helps the US Dollar maintain its strength close to the multi-week high it achieved on Monday and maintains the rates on US Treasury bonds high, which is thought to be eroding demand for precious metals.
• Moreover, the People’s Bank of China (PBoC) abruptly stopped purchasing in May, capping a 1.5-year buying binge and helping to divert capital away from the price of gold.

 

Technical Triggers

• Gold has formed a Head and Shoulder pattern on Daily charts in the last two months with a record high touched above $2450. Neckline support of this H&S formation is $2300. If prices break this level and sustain below it, the next target could be $2150.
• Silver has formed Double Top formation around $32.5 on daily charts time frame. As prices have closed below the important support of $29.5, the Double top formation target is $28.50 and $26.50.

 

Support and Resistance

 

 

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