Fundamental News and Triggers

• Amid increased global concerns, the price of gold broke a six-day losing skid on Monday, attracting some haven flows after registering its largest weekly decline in almost three years last week.
• The employment of long-range missiles by Ukraine within Russia was approved by US President Joe Biden. The decision was made in response to the deployment of thousands of North Korean soldiers to aid Moscow’s military effort.
• However, in December, the Fed is anticipated to cut borrowing costs for the third consecutive meeting. However, according to CME FedWatch Tool data, investors have recently reduced the odds from an 82% possibility of an impending drop of 25 basis points (bps) to 62%.

 

Technical Triggers

• As anticipated, the gold price started to rise again after November 14, when a “hammer” appeared on the daily charts, signalling the start of a recovery.
• Gold has retraced 50% of this rally from Rs 67500 to Rs 80000 and prices have shifted from overbought zone to oversold zone.
• Silver has retraced 61.8% of its rally from Rs 78500 to Rs 100,000 and prices have shifted from overbought zone to oversold zone.
• Gold is expected to continue its rebound up to Rs 76500 and Silver up to Rs 92000 and Rs 94000.

 

Support and Resistance

 

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