Fundamental News and Triggers

• The price of gold is testing its all-time high and receiving assistance from several sources. The anticipated reduction in interest rates by significant central banks, in conjunction with geopolitical uncertainties arising from the continuous wars in the Middle East, prove to be pivotal elements propelling investments towards the yellow metal.
• This Thursday marks the third interest rate decrease of the year for the European Central Bank, and expectations of a November rate cut by the Bank of England were reinforced by a strong decline in UK inflation.
• The latest surge in the USD to its greatest level since August appears to have had little impact on bulls. Moreover, Israel is prepared to counter Iran’s October 1 strike, according to a person with knowledge of the situation. This might lead to a further escalation of geopolitical tensions and a full-scale conflict in the Middle East.

 

Technical Triggers

• Gold prices have sustained above the resistance of $2685, the next target is $2700 (~Rs 77000) and $2750 (~Rs 78500).
• Silver is moving towards the higher side of the range towards $32.5 (~Rs 93500). If prices sustain above this resistance, the next target is $33 (~Rs 95000).

 

Support and Resistance

 

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