Gold and Silver start the new quarter with sideways momentum

Fundamental News and Triggers

  • Gold and Silver started the new weekday, new month and new quarter with the consolidation phase. Prices struggle to hold the gains on follow-through buying in the Dollar Index and rising Bond yields.
  • The US ISM PMI revealed that the manufacturing sector decreased for the third consecutive month in June, while factory input costs fell to a six-month low. This further indicated that inflation is decreasing, allowing the US central bank to begin cutting borrowing prices.
  • China’s economic troubles, geopolitical tensions, and political instability in the US and Europe have supported the safe-haven precious metal.
  • Fed Chair Jerome Powell’s speech later today and FOMC minutes on Wednesday will continue to be closely watched.

 

Technical Triggers

  • Gold seems to be on the verge of breaking important support of $2300 (Rs 70800). This level is also neckline support of Head and Shoulder formation on the 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.
  • Silver has formed Double Top formation around $32.5 on daily charts time frame. As prices have closed below the important support of $29.5, the Double top formation target is $28.50 and $26.50.

 

Support and Resistance

 

 

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