Fundamental News and Triggers

• It appears that gold is moving in anticipation of the possibility of lower rates at some time. More significantly, gold is a great asset to have in case the Federal Reserve makes a move contrary to what it usually does after a rate increase cycle.
• Traders and investors received yet another dose of warmer PPI inflation data yesterday, following the unexpectedly warm U.S. CPI report for February on Tuesday.
• While the Federal Reserve is concerned about rising inflation, the most recent economic data is not having a significant effect on forecasts for interest rates. The likelihood of a rate decrease in June is still over 60%, according to the markets, and this will continue to support higher gold prices.

Technical Triggers

• As stated before, gold has touched the target of $2200. Now we could see some profit-booking and retracement towards $2150 (~Rs 65000) before the prices could see another runup.
• Silver prices almost touched the target of $25 (~Rs 75000), as stated before. Now prices are seeing profit-booking and retracement towards $24 (~Rs 72500).

Support and Resistance

 

 

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