Fundamental News and Triggers

• The gold price continues to soar above $2500 per troy ounce, aided by rising geopolitical concerns in the Middle East. Last week, US Federal Reserve Chair Jerome Powell’s address at the Jackson Hole symposium signalled the “time has come” to cut interest rates, which supports the precious metal.
• Gold ETF holdings surged by 15 tonnes last week, reaching their highest level in six months. Speculative interest is very intense. The net long position of speculative investors increased to roughly 193,000 contracts in the week ending August 20th, while gold reached an all-time high, its greatest level in over four and a half years.
• The attention will shift to the preliminary US GDP Q2 annualized US PCE data, which will be published on Thursday and Friday, respectively for further cues.

 

Technical Triggers

• Gold buyers must reclaim the record high of $2532 (Rs 72270) before confronting the next important hurdle at $2550 (Rs 72500). Acceptance over the latter might attempt the $2600 (Rs 75000) round barrier en route to the triangle goal of $2660 (Rs 76500).
• On the other hand, the initial demand level for Gold buyers is predicted below $2500, below which Friday’s low of $2485 (Rs 71300) will be tested. A sustained breach of the latter might expose the downside to the previously indicated triangle resistance-turned-support at $2468 (Rs 70900).

 

Support and Resistance

 

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