Fundamental News and Triggers

• After months of speeches, polls, debates, and suspense, election day is finally here. Yesterday, Americans went to the polls to pick between former President Donald Trump and current Vice President Kamala Harris. Both sides will spend like money grows on trees which is a tailwind for precious metals.
• Rising probabilities of Trump winning the election stoke concern about the imposition of potentially inflationary tariffs, driving US Treasury bond rates and the US dollar considerably higher.
• The US election results remove a huge source of uncertainty for markets, prompting a new wave of risk-on trade and further limiting the safe-haven gold price.
• Furthermore, Iran’s intentions for a retaliation strike in response to Israel’s attack on its land on October 26 raise concerns about the danger of further escalation of Middle Eastern hostilities.

 

Technical Triggers

• As suggested in the last weekly blog, Gold is likely to touch $2800 (~Rs 80000) before Diwali, exactly what happened. Now it seems, all the positives are discounted in the prices, so gold prices are heading for correction.
• Silver prices are not able to sustain above its neckline resistance of $33 (~Rs 95700) and have corrected from highs. We are going to see some profit-booking and buying on dips and a lot of volatility today as US Election results will be announced late at night.

 

Support and Resistance

 

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