Fundamental News and Triggers

• Amidst prospects for peace talks between Israel and its neighbours, gold fell 1.5% to touch $2624 (Rs 74900) and Silver fell 5% to touch the low of $30.34 (~Rs 88222).
• Hezbollah’s assistance for a ceasefire and increasing US Treasury yields further weigh on bullion as demand for safe havens declines.
• As attention turns to impending US inflation data, unemployment claims, and consumer confidence, traders modify their predictions for a Fed rate decrease.
• At the end of September, the People’s Bank of China reported holdings of 72.8 million ounces (2,264 tons) of gold, which remained constant. PBoC has gone five months without buying any gold. The PBoC purchased 29 tons of gold in the first four months of this year; only minor acquisitions were made in April. In contrast, 225 tons in total were bought last year. This news also gave negative sentiment in the gold market.

 

Technical Triggers

• Gold has broken important support of $2650 (~Rs 75400) and is aiming for $2600 (~Rs 73500) next.
• Silver has broken the important support of $31(~Rs 91500), aiming for $30 (~Rs 87500) next.

 

Support and Resistance

 

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