Fundamental News and Triggers
• The Federal Reserve raised interest rates by 25 basis points and maintained its preference for extremely limited further rate hikes. Federal Reserve Powell also said “no” to rate cuts in 2023, citing the ongoing battle against stubborn inflation, which will continue until US inflation returns to desired levels.
• As a result, the time has come for the Federal Reserve to maintain these higher rates for an extended period of time. Despite the absence of additional rate hikes, US inflation will remain under pressure as US banks tighten credit conditions for businesses and households to protect themselves from delinquency.
• This monetary stance is considered to be a little dovish and positive for Gold and Silver. Therefore, Gold and silver will continue its bull run, if there is more news in banking crisis emerging in near future.
• Gold prices has seen very volatile moves, with prices rising 10% in 10 days, then falling more than 3% from highs. Now after FED rate hike, prices are expected to consolidate at these levels for a while.
• Silver has underperformed more than Gold, so its bull run is expected to continue. The next target for Silver is Rs 71000 in short-term.
Support and Resistance
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