Gold consolidates in a range waiting for fresh cues

Fundamental News and Triggers

  • Because of predictions that major central banks would start cutting rates, gold has increased by more than 12% so far in 2024. Gold prices may rise due to renewed concerns that Israel and Hamas may engage in hostilities in the Middle East.
  • With the US dollar strengthening and US Treasury rates declining, gold prices dropped. Last Friday’s US NFP data for April fell short of forecasts and lagged behind March’s numbers. The US Dollar might be hurt by PMIs in the manufacturing and services sectors entering the contractionary zone, which would be good news for the gold prices.

 

Technical Triggers

  • Gold prices have strong support around $2290 and resistance around $2360, prices need to break this range for a new rally.
  • Silver prices have strong support around $26.30 while resistance is at $27.70, prices need to break this range for a new rally.

 

Support and Resistance

 

 

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