Fundamental News and Triggers

• The US dollar continued its upward trajectory following Donald Trump’s victory in the US presidential election, reaching its highest level since early July, prompting significant selling around the gold and silver prices yesterday.
• Trump’s expansionary plans and corporate tax cuts may put upward pressure on inflation, limiting the Federal Reserve’s ability to loosen monetary policy further. This continues to support the greenback.
• China’s latest stimulus measures of 10 trillion Yuan have fallen short of investor expectations, undercutting prior prospects for industrial assistance in the largest manufacturing centre and severely hurting the outlook for industrial metals across the board. This has put extra pressure on Silver, which has major usage in electrification, notably in solar panels.
• Traders are now waiting for comments from important FOMC members, including Fed Chair Jerome Powell, for clues about the future of US interest rates, amid speculation that the US central bank could delay its lowering cycle.

 

Technical Triggers

• As suggested, Gold has achieved the first target of $2620 (~Rs 77000) and Silver has achieved the first target of $31 (~Rs 92000). More weakness is expected up to $2565 in Gold and $29.80 in Silver.

 

Support and Resistance

 

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