Gold and Silver get supports after steep fall

Fundamental News and Triggers

  • There is little follow-through buying in the gold market, and a variety of divergent causes affect its price.
  • Reductions in the likelihood of more conflicts in the Middle East prove to be a major factor undermining the safe-haven precious metal.
  • In addition, there is growing consensus that the Federal Reserve will limit the upside for the non-yielding yellow metal by maintaining higher interest rates for longer in the face of sticky inflation.
  • In the meanwhile, the US Dollar is trading close to where it has been for more than a week following Tuesday’s negative release of the US PMIs, which indicated that the economic recovery stalled at the beginning of the second quarter.

 

Technical Triggers

  • Gold prices got support around $2305 and prices have reversed and it is expected that prices will be consolidating between $2300-2350.
  • While Silver has got strong support around $27 and an uptrend line extending from $22 to $30 on Daily charts.

 

Support and Resistance

 

 

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