Fundamental News and Triggers

• Following the announcement of US inflation data yesterday, gold prices continued their upward trajectory. While the core CPI remained steady from October, which was predicted by the consensus to be 3.3%, the CPI increased from 2.6% to 2.7% in the twelve months leading up to November.
• The US CPI data supports the market’s forecast of a rate drop next week, with swaps pricing a 92% chance of one. This reinforces the continuous disinflation.
• Investor attention will now turn to the release of the PPI and Initial Jobless Claims figures for the week ending December 7, given the CPI readings are now in the past.

 

Technical Triggers

• Weak market sentiment is favouring a renewed upward impetus in gold prices. As suggested, gold prices are likely to touch $2760, and that target is achieved. As prices continue their uptrend, the next level to watch for is the previous high of $2800 (Rs 80000).
• Silver prices have given a breakout from its one-month range of Rs 87000 to Rs 94000. Prices are likely to rally towards Rs 97000 next.

 

Support and Resistance

 

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