Fundamental News and Triggers

• As the Dollar Index declines due to investors pulling out of the dollar due to the possibility that the FED’s current rate hike cycle will eventually come to an end, gold and silver prices rise.

• Key U.S. CPI data for June were currently being eagerly awaited by markets. While the headline inflation rate is anticipated to have decreased last month as a result of lower gasoline prices, core CPI is anticipated to have remained stable.

• Central Banks continue to buy gold in their reserves, with the biggest buyer being China. China added 21 tonnes last month and has totally added 165 tonnes last month. Total reserves now amount to 2113 tonnes.

 

Technical Triggers

• Gold prices have rebounded from strong psychological support of $1900 (~ Rs 57500) which was also 150 DMA, the next resistance is $1950 (~ Rs 58700).

• Silver prices have very important support around $22(~ Rs 68000) which is also 200 DMA and a 50% Fibonacci retracement level of rally from $18 to $26. Prices have rebounded from that level heading towards the next resistance of $23.50 (~ Rs 72000)

 

Support and Resistance

 

 

 

 

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