Fundamental News and Triggers

• Gold and silver prices lack the conviction to break out of the range, since it is becoming more widely accepted that the Fed will likely cut interest rates at its meeting in September and that lower borrowing costs in December would again support the bullion price
• Fed Chair Jerome Powell’s dovish comments on Tuesday confirmed the expectations, and the USD bulls are now on the defensive due to a slight decline in US Treasury bond rates.
• Concerns about slowing global economic growth, geopolitical tensions, and political uncertainty in the US and Europe may support the safe-haven precious metal. Investors are now looking forward to the release of the FOMC meeting minutes, which is expected later today, for some major momentum ahead of the much-awaited US NFP report, on Friday.

 

Technical Triggers

• Gold prices have been trading in the range of $2300 (Rs 71000) to $2380 (Rs 73000) for the past few days waiting for a catalyst for either side breakout. $2300 is very important neckline support for Head and Shoulder formation on daily charts.
• If prices sustain below this level, we can see sell up to $2250 (Rs 68000). The ensuing move-up might bring the gold price back to the $2,360-2,365 supply zone, negating any short-term bearish bias.

 

Support and Resistance

 

 

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