Fundamental News and Triggers

• There were two major announcements in this budget yesterday for the bullion industry, which is considered positive by the market participants. 1) Reduction in Duty on Gold and Silver from 15% to 6%. 2) Reduction in Long-term Capital Gain tax on Gold from 20% to 12.5%.
• The US dollar has risen to a nearly two-week low despite an increase in US Treasury bond rates, which is expected to limit the gold price’s future appreciation.
• Traders may also choose to wait for additional information regarding the Fed’s policy course before making new directional bets on the precious metals. As a result, the market will remain focused on the release of the Advance US Q2 GDP and the US Personal Consumption Expenditures Price Index data on Thursday and Friday, respectively.

 

Technical Triggers

• 9% Duty in Gold and Silver led to a sharp fall of 5-6% in domestic gold and silver prices yesterday. Prices are expected to consolidate a bit before moving in either direction.
• If Gold breaks Rs 68000, it is expected to fall towards Rs 67000 and if Silver falls below Rs 85000, it can fall further towards Rs 84000.

 

Support and Resistance

 

 

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