Fundamental News and Triggers

• Investors have flocked to gold as a safe-haven asset in response to the Fed’s policy change and deteriorating economic conditions, pushing the price to an all-time high of $2694 (~Rs 75900).
• According to the Conference Board’s newest poll, consumer confidence fell by 6.9 points, marking the greatest monthly loss in three years.
• Escalating geopolitical tensions in the Middle East adds to the fear. The battle in Israel has expanded to encompass Hezbollah in Lebanon. Both sides have aggressively undertaken military strikes, expanding the scope of the situation.
• Investors use gold as a conventional hedge against global volatility. The confluence of these economic and geopolitical variables has considerably strengthened the safe haven.

 

Technical Triggers

• After touching the $2600 target, gold prices continue their bullish momentum to $2700 (~Rs 76000). Prices are in the overbought zone and we can see a retracement up to $2500 (~Rs 71800) and $2475 (~Rs 71000) anytime soon.
• Silver has started its bullish momentum touching a high of $32.5 (~Rs 95000) getting support from the gold rally. The next resistance is $33 (Rs 96000).

 

Support and Resistance

 

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