Fundamental News and Triggers
- Fed Powell’s prepared remarks for his two-day semi-annual testimony before Congress began with the statement that “the Fed must prevent a one-time increase in price-level from becoming an ongoing inflation problem by keeping inflation expectations well-anchored.” Even while these remarks support the possibility of rate decreases in the year’s final quarter, the main force behind the present price movement seems to be the reduction of geopolitical risks.
- Due to traders unwinding risk hedges linked to possible interruptions in the Strait of Hormuz, a crucial chokepoint for around 20% of the world’s oil supply, the ceasefire between Iran and Israel has put pressure on the prices of gold and crude oil.
- Days after both countries agreed to the ceasefire, Israeli Defence Minister Israel Katz ordered retaliatory strikes, despite the apparent breakthrough. Tehran disputes the claims that Iran had broken the pact.
Technical Triggers
- Gold prices can retrace to $3275(~Rs 96000) if it sustains below $3330 (~Rs 97000).
- Silver prices have retraced from their high; the next support is $35.50 (~Rs 105,300). Prices should sustain this support for the bull trend to continue. If this support is broken, the next downside level is $34.50 (~Rs 104,000). On the upside, prices can rise to $36.75 (~Rs 107,500).
Support and Resistance
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