All eyes of FED Meeting today

Fundamental News and Triggers

Over the past three weeks, gold has fluctuated within a narrow range of $1935 to $2000 due to growing market skepticism regarding the US economy and monetary policy. More cues for the yellow metal are anticipated from the Fed meeting’s conclusion later in the day.

On Tuesday, weak U.S. inflation data sparked a rally in the majority of risk-sensitive markets on the theory that easing inflation would encourage the FED to scale back its hawkish stance.

As China cut interest rates for the first time in ten months to support a faltering economic recovery, risk appetite on international markets also increased.



Technical Triggers

Gold has rebounded from critical support of $1955 on a medium-term ascending channel. Next support is $1935 (Rs 59200) and $1900 (Rs 58400) and resistance is $2000 (Rs 60400) and $2025(Rs 61000).

Silver is trading rangebound facing strong resistance around $24.15(Rs 73000) and support around $23.5 (Rs 71500).



Support and Resistance






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