By Dr. Renisha Chainani, Head- Research, Augmont – Gold for all
Following the announcement of higher-than-expected US PMI data, gold and silver erased all of their gains for the week on Friday. The report revealed that US manufacturing and services activity remained strong, implying that inflation and interest rates will continue high for longer.
Precious metals prices rose in midweek as investors sought refuge as geopolitical uncertainties grew. Concerns were heightened by Israel’s warning of “all-out war” with Lebanon and Russia’s agreement to form an alliance with North Korea. In the Middle East, tensions between Israel and Lebanon erupted on Wednesday when Israeli authorities said that they had authorized preparations for the Northern Command to begin a “all-out war” with Hezbollah in Lebanon. The warning came in reaction to Hezbollah head Hassan Nasrallah’s release of drone footage showing nine minutes of aerial footage of the docks in Israel’s port city of Haifa, which are run by Chinese and Indian enterprises, according to Aljazeera News.
Gold and silver prices also rose as investors became anxious about developments in the east. On Wednesday, Russian President Vladimir Putin inked an agreement with North Korean leader Kim Jong Un that guarantees each country’s help in the event of an assault.
Precious Metal has reached a technical crossroads now that a new trigger could determine the directional trend for some time to come. In the last month, we have seen lower highs and lower lows, which means prices are witnessing pressure on the rise.
International Gold Daily Chart
Gold Head and Shoulder pattern is still intact, where $2300 neckline support is very important, if breached will lead to $2150, while if prices are sustained above $2385, the view will be negated.
International Silver Daily Chart
The Silver Double Top pattern is still intact at around $32.5, prices need to break $29 to fall towards $28 and $27.5.
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