Gold and Silver consolidate near support levels

Fundamental News and Triggers

  • Despite expectations for a looser monetary policy by the Federal Reserve and rising geopolitical tensions in the Middle East, the price of gold is consolidating between $2400 and $2450.
  • Israel is preparing for Hamas’s retaliation for the assassination of its leader, Ismail Haniyeh. US intelligence indicates that the response may not come until late Thursday or Friday.
  • Following the release of the ISM Services PMI, which showed that the economy is expanding at a healthier pace, market players found some relief. All eyes are on Initial Jobless Claims for the week ending August 3.

 

Technical Triggers

  • Buy on dips and sell on rallies should be the strategy used in Gold. $2350 (~Rs 68000) and $2400 (~Rs 69000) remain very strong support buying zone and $2500 (~Rs 71000) is a very strong resistance selling zone.
  • Silver prices have been trading in a downward-slopping channel for the last three months after hitting a record high in May. $26.5 (~Rs 78000) is very strong support, which prices should sustain to continue its uptrend.

 

Support and Resistance

 

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