Fundamental News and Triggers

• Gold prices continue to scale higher and higher above $2500 on fresh hints of a September rate cut, including wider political uncertainty and increased concerns of an escalation in the Middle East tensions.
• Furthermore, strong fundamentals and technical support the prices in the medium term. The first determinant has been the extremely strong central bank buying by emerging market central banks of Asia. The second determinant has been the rising interest in gold through ETFs, the physical market, or even the future COMEX, which has seen a rise in those positions supporting gold prices. The third determinant has been rising tensions in the Middle East, Russia, and Ukraine, which have also supported gold prices.

 

Technical Triggers

• As gold has crossed all resistance trading above $2500, the sky is the limit. The next resistance could be psychological levels of $2525 (~ Rs 71000) and $2550 (~Rs 71700).
• Silver rally which started from Rs 68000 to Rs 96000 in 2024, has almost retraced 50% to around Rs 82000. Silver prices seem to have formed a base around $27.5 (~Rs 80300) in the short term and a rebound is expected from here with the next resistance of Rs 86000.

 

Support and Resistance

 

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