Precious Metals attracts follow-through buying

Fundamental News and Triggers

  • For the second day in a row, some follow-through buyers are drawn to the gold price. US data released on Thursday revealed a spike in weekly unemployment claims and an annual growth in the headline US CPI of 2.4%, the lowest since February 2021.
  • FED rate reduction bets help to bolster gold and put the USD on the defensive. The mixed data indicates that the US central bank will keep lowering interest rates and supporting the gold price, given that it has refocused its efforts on achieving maximum sustainable employment.
  • As we approach the weekend, traders will be watching the publication of the US PPI report, which is expected to fuel USD demand and create short-term buying opportunities surrounding the precious metal.

 

Technical Triggers

  • Gold has rebounded from the level of $2618 (~Rs 74750) and heading high towards $2700 (~Rs 76400).
  • Silver has rebounded from the level of $30.35 (~Rs 88220) and heading high towards of $32.5 (~Rs 93500).

 

Support and Resistance

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.

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