Fundamental News and Triggers

• Gold and Silver are trading very near their support level of $2300 (Rs 70800) and $29 (Rs 86000) on FED’s hawkish stance, Dollar strength and higher US bond yields. However, Geopolitical tensions and political uncertainty will support the prices from free fall.
• The Fed anticipated only one rate cut in 2024, but markets are still pricing in a higher likelihood of the Fed’s first rate cut in September and around two 25 basis point cuts by the year-end.
• Traders also appear hesitant ahead of the US presidential debate, the publication of US GDP data today, and the Fed’s favourite inflation barometer, the PCE Price Index, tomorrow.

 

Technical Triggers

• Gold seems to be on the verge of breaking important support of $2300 (Rs 70800). This level is also neckline support of Head and Shoulder formation on the daily charts. If prices sustain below this level, we can see sell up to $2250 (Rs 68000). The ensuing move-up might bring the gold price back to the $2,360-2,365 supply zone, negating any short-term bearish bias..
• Silver has formed Double Top formation around $32.5 on daily charts time frame. As prices have closed below the important support of $29.5, the Double top formation target is $28.50 and $26.50.

 

Support and Resistance

 

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.