Fundamental News and Triggers

• Despite better-than-expected core retail sales figures, gold prices reached a fresh record high of $2488 (Rs 74730). Powell’s statement yesterday suggested that the Fed was becoming increasingly confident that inflation was returning to goal is supporting the gold rally.
• It appears that investors have already completely factored in the Federal Reserve’s 25 basis point interest rate reduction in September. In addition, market players anticipate that the US central bank will reduce borrowing prices once again in December as a result of decreasing inflationary pressures.
• To lessen their reliance on the dollar, central banks are deliberately adding gold to their holdings. A WGC survey indicates that 20 central banks still want to raise gold, despite China’s current purchasing spree coming to a pause.

 

Technical Triggers

• Gold prices are trading above previous record high prices of $2450 and touched a new high of $2488 (Rs 74730) yesterday, next target is $2500 (Rs 75000).
• Similarly, Silver touched $32 (Rs 94500) as forecasted and then retraced back below $31. Prices could take strong support at $30 (Rs 90000) and bounce back.

 

Support and Resistance

 

 

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