Fundamental News and Triggers

• The US Dollar declines to its lowest point since April 10, which, along with Middle East geopolitical unrest, may provide more support for safe-haven gold and silver and increase the likelihood of some upside.
• Predictions of an impending rate cut by the Federal Reserve this year were raised by indications of a deceleration in inflationary pressures and weakening economic growth, which should keep the flow of money into precious metals.
• The European Central Bank (ECB) meeting on Thursday and the Bank of Canada (BoC) decision on Wednesday are two important central bank event risks that might provide the Gold some momentum and influence the short-term trend.

 

Technical Triggers

• Gold prices have rebounded from the important support of $2325 (Rs 71300) and are trading towards the resistance zone around $2370 (Rs 72700). If prices sustain above this level, we could see follow-through buying, otherwise, rangebound momentum will continue.
• Silver has formed double top formation around $32.5 (~Rs 96000) on daily charts. Important neckline support is of $30 (Rs 90000). If prices sustain below this, we could see, a big sell-off. Yesterday, prices rebounded from this support, so some rangebound momentum is expected in the short term.

 

Support and Resistance

 

 

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