Deep pocket traders waiting for FED meeting

Fundamental News and Triggers

Deep pocket traders are avoiding large directional positions in bullion market as they are waiting for FED monetary policy next week.

To better evaluate the lag effects of previous actions, FED policymakers have indicated they may hold rates steady this month. However, this should not be interpreted as a protracted pause, as the hiking cycle may resume in July given persistent price pressures in the nation. This is acting as negative pressure on prices.


Technical Triggers

Despite the recent weakness, gold prices are still favoring the upside, maintaining a pattern of higher highs and higher lows, and trading within a medium-term ascending channel. Next critical resistance is $2000 and $2025, to continue uptrend.

 Silver prices retraced 38.2% to $23 of its rally from $18 to $26.4 last week. Prices have rebounded to head higher towards Fibonacci resistance level of $24.4.



Support and Resistance

Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above-mentioned opinions are based on the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or an implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purpose and are not to be construed as investment advices.


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