Gold and Silver retreat on optimism of striking of US Debt ceiling deal

Fundamental News and Triggers

Gold and Silver prices retreat from overbought zone on optimism of US diplomats passing the US debt ceiling deal by the end of this week, which lead to recovery in Dollar Index, which was in oversold zone.

US President Joe Biden and House Speaker Kevin McCarthy were able to persuade markets that they can work together to avoid a “catastrophic” default, which supported the market’s risk-on mood and propelled the US Dollar.


Technical Triggers

Gold prices have 23.6% retracement support at $1970 (Rs 58750), which if breaks, can take prices down to 38.2% retracement at $1900(Rs 56900), of the rally from $1600 (Rs 49000) to $2075 (Rs 61800) in short-term. Long-term view is still bullish, buy on dips.

Silver prices are likely to get support around current levels of $23.80- $24 (Rs 72000), as this is the 38.2% retracement of the rally from $20(Rs 61500) to $26.4 (Rs 78000). Longterm view is still bullish, buy on dips.

Support and Resistance 



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