Fundamental News and Triggers

• As sticky U.S. inflation began to emerge, markets basically priced out prospects for an early rate reduction from the Fed. It is currently anticipated that the central bank will only start reducing rates in September or maybe in the fourth quarter.
• Higher rates over extended periods of time are not good news for gold since they raise the opportunity cost of holding the yellow metal. Despite recent declines, gold prices were still up year to date due to ongoing concerns that rising interest rates will have a negative impact on global economic expansion.

 

Technical Triggers

• Gold prices got support around $2305 and prices have reversed and it is expected that prices will be consolidating between $2300-2350.
• Silver has got strong support around $27 and an uptrend line extending from $22 to $30 on daily charts. If prices sustain above $27.5, it can head higher to $28, and if prices fall below $26.80, it can fall further to $26.30.

 

Support and Resistance

 

 

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