Fundamental News and Triggers

• After raising borrowing costs to their highest level since 2001 on Wednesday, the FED chairman spoke to the press yesterday and stated that the economy still needs to slow down and the labour market to deteriorate for inflation to credibly return to the 2% target. This led to a profit booking in gold and silver. Additionally, the US GDP increased by 2.4% on an annualised basis from April through June.

• This illustrates how resilient the US economy is and supports the Fed’s prospects for further policy tightening. This caused a sharp increase in US Treasury bond yields overnight, which helped the US Dollar Index hold steady close to a two-and-a-half-week high and weighed on the bullion price

Technical Triggers

• Gold is expected to trade in the range of Rs Rs 58800 and Rs 60000 for the next few days.

• Yesterday‘s low of Rs 73400 in Silver is very crucial, if broken can drag prices to Rs 71000. Otherwise, if we see recovery, the next resistance is Rs 75000

Support and Resistance

 

 

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