Fundamental News and Triggers

• The price of precious metals recovered well from eight-day lows as geopolitical tensions in the Middle East countered the recent increase in the US dollar and the yields on US Treasury bonds throughout the curve.
• With the unexpected fall of the Syrian government over the weekend, rising geopolitical tensions in the Middle East continue to fuel demand for gold and silver prices. President Bashar al-Assad fled to Russia with his family in search of shelter after Syrian revolutionaries overran the capital, Damascus.
• Following last week’s drop in the price of gold and silver, all eyes are on Wednesday’s crucial US inflation test. In the run-up to the US CPI battle, traders will probably reposition.

 

Technical Triggers

• Gold prices are trading on the higher side of the trading range. Prices are likely to face stiff resistance around $2720 (~Rs 78000).
• Silver prices have given a breakout from its one-month range of Rs 87000 to Rs 94000. Prices need to sustain above Rs 94000 to continue its rally towards Rs 96500.

 

Support and Resistance

 

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