Fundamental News and Triggers

• Bullion market players await economic projections, dot plot trajectory and a speech by the FED chairman after FOMC concludes its meeting today. Tomorrow we have US CPI data, which is also very important for future interest rate trajectory. The next two days are going to be very volatile for Gold with $2300 acting as important support and a difficult nut to crack.
• Amidst a robust US labour market and persistent inflation, investors have been reducing their bets on an impending interest rate decrease by the Federal Reserve in September as we approach the major data/event risks. This proves to be a significant component acting as a headwind for the price of gold and helps the US Dollar to stand tall close to a one-month top.

 

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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