Gold continues sideways 50000, market mood still solid
Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Rebound – Gold need to sustain above $1700, to see a rebound and start trending higher.
Long-term View (3-4months) – Positive – – Any dips towards 49000 and 52000 should be used as buying opportunities for the target of 52000 and 60000 for Gold and Silver respectively in long-term.
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and Triggers
International News – Gold price is facing sheer volatility contraction, following the footprints of the DXY. Returns on US bonds have soared amid the absence of evidence claiming a slowdown in the price rise index.
Economic Data – As per the CME’s FedWatch Tool, suggest a 75 bps Fed rate hike in November, which in turn probe the Gold buyers. The hawkish FED bets could have recently taken clues from upbeat comments from US Treasury Secretary Janet Yellen, suggesting a strong US jobs market, as well as upbeat US inflation expectations as per the 10-year and 5-year breakeven inflation rates.
Demand – Physical gold buying improved in India this week as prices cooled ahead of the Dhanteras and Diwali festivals this month, while Chinese premiums stayed elevated amid robust demand