Gold and Silver stuck in tug-of-war

Fundamental News and Triggers

  • Gold and Silver are stuck in a tug-of-war for bullish and bearish drivers. Strong investment and retail demand are not allowing the Gold prices to fall below $2300. FED rate cut delay and subsidizing geopolitical tensions are creating a floor on the Gold prices above $2400.
  • Gold and Silver prices are expected to consolidate in a range for a while unless we get a new trigger.
  • US economic data like the Manufacturing Index, New orders, and Shipping Index- all are coming weak from the past few days, which shows that economic activity is slowing down. While Inflation is still above the FED target of 2%, so we are expected to see stagflation this year in the US, which is a supportive factor for precious metals


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 sell-off towards $28.5 (~Rs 85500).


Support and Resistance



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