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.
• 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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