Gold and Silver consolidate around $2300 and $27 respectively

Fundamental News and Triggers

  • Despite a stronger US dollar and higher US Treasury rates, gold recovers from recent losses thanks to Chinese market demand.
  • US durable goods orders showed strength, although later in the year Fed rate decreases are now anticipated. The majority of market investors believe that the Fed funds rate will be dropped for the first time in September 2024, therefore expectations of a rate cut by the Federal Reserve in June or July have evaporated.

 

Technical Triggers

  • Gold prices got support around $2305 and prices have reversed and it is expected that prices will be consolidating between $2300-2350.
  • Silver has got strong support around $27 and an uptrend line extending from $22 to $30 on daily charts. If prices sustain above $27.5, it can head higher to $28, and if prices fall below $26.80, it can fall further to $26.30.

 

Support and Resistance

 

 

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