Fundamental News and Triggers

• Several factors have combined to push the precious metal price downward during the past two days. The recent spike in US Treasury bond rates has been attributed to traders’ lack of expectation of another massive interest rate decrease by the Federal Reserve in November.
• Secondly, despite increased acceptance of a less aggressive policy easing by the Federal Reserve and predictions for a regular 25 basis point interest rate cut in November, the US dollar surged above the 103 mark on Monday (the highest level since August 8).
• In reaction to Hezbollah’s drone attack on its army installation on Sunday, which left four soldiers dead and seven critically injured, Israel promised to respond forcefully, increasing the possibility of a further escalation of geopolitical tensions and supporting precious metals prices.

 

Technical Triggers

• Gold is expected to trade in a confined range of $2645 (~Rs 75500) and $2685 (~Rs 76500) due to mixed fundamentals.
• Silver has been trading in the range of $30(~Rs 88000) to $32.5(~Rs 93500) for the past month due to mixed fundamentals.

 

Support and Resistance

 

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