Fundamental News and Triggers

• Gold and silver have risen, pushing closer to resistance levels, as the minutes of the recent FOMC meeting indicated that the majority of policymakers believe US economic growth is progressively moderating.
• Moreover, the underlying strong optimistic attitude throughout the global equities markets is seen somewhat acting as a headwind for the safe-haven precious metal despite relatively limited liquidity on the back of the US’s Independence Day holiday today.
• The near-term bias favours optimism since the Federal Reserve is expected to lower interest rates this year, supporting the bullion price.

 

Technical Triggers

• Gold is trading in a range with a descending triangle with lower highs and higher lows. The triangle is becoming narrower and narrower every week, so a breakout is imminent. A sustainable close above $2380 (Rs 72800) and a sustainable close below $2300 (Rs 71000) will confirm a downside breakout.
• Silver is trading in a range with a descending trend channel with lower highs and lower lows. A sustainable close above $31(Rs 92500) will give a breakout towards the upside, while a sustainable close below $29 (Rs 89000) will give a breakout towards the downside.

 

Support and Resistance

 

 

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