Fundamental Q News and Triggers

• As the dollar reached 10-month highs in response to the Federal Reserve’s warning that U.S. interest rates will stay higher for longer, gold prices are trading weak and moving away from mid-$1900 levels.

• The Dollar Index continued its upward trend from the previous week and reached its highest level since November. A rising dollar deters holders of other currencies from purchasing commodities, such as gold, denominated in dollars.

• Although many also think that a cap must be put on oil prices if the Fed is to attain its annual inflation objective of 2 per cent, the markets are concerned that the Fed’s increased hawkish approach will slow global growth.

 

Technical Triggers

• Gold prices have been making lower highs and lower lows, since touching record–high prices in May. Near–term resistance is $1970 and support is $1920. Prices need to break this range to set a one–way direction. Prices are likely to trade sideways in this range for the next 10-15 days.

• Silver prices have been continuously taking support at the uptrendline, which now suggests that, support is at $23. Until prices stay above this support, the uptrend is likely to continue.

Support and Resistance

 

 

 

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