Bullion prices consolidate at a record high level

Fundamental News and Triggers

  • The price of gold and silver consolidates at record highs, building momentum for further gains. Financial markets anticipate two cuts of one-quarter percentage points before the end of the year, with the first cut occurring at the earliest possible date in September. This is a negative trigger for bullion.
  • Federal Reserve members stressed that the US central bank is likely to maintain interest rates higher for a longer period and cautioned that much more evidence of easing inflation was required before it could start reducing rates.
  • President of the Atlanta Fed Raphael Bostic stated that the US central bank has to exercise caution with this excellent decision. Bostic said, “To be sure inflation does not start to bounce around, I would rather wait longer for a rate cut.”

Technical Triggers

  • Gold has made a double top around $2450 (~Rs 74000), and prices are expected to retrace now towards $2380 (Rs 72800). Prices need a positive trigger to cross the previous high.
  • Silver prices are getting bullish support from positive momentum in gold and copper prices. Silver has strong support at 92000, if prices sustain below this level, it means it has topped out and is expected to retrace further towards 90000 and 87500

 

Support and Resistance

 

 

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