Gold continues to attract safe-haven flows

Fundamental News and Triggers

  • Russia and Nuclear Threats: Russia’s President Vladimir Putin has made threats about using nuclear weapons, which is making people worry. This is causing them to invest in gold, a safe asset.
  • US Economy and Inflation: The new US president’s plans might lead to higher prices (inflation). This could make the US Federal Reserve less likely to lower interest rates.
  • Strong US Dollar: The US dollar is strong, which is also making gold more attractive to investors.
  • Reduced Chance of Interest Rate Cut: It’s becoming less likely that the US Federal Reserve will lower interest rates in December. This is another factor supporting gold prices.

 

Technical Triggers

  • Gold has retraced 50% of this rally from Rs 67500 to Rs 80000 and prices have shifted from an overbought zone to an oversold zone. Gold is expected to continue its rebound up to Rs 76500 and Rs 77400.
  • Silver has retraced 61.8% of its rally from Rs 78500 to Rs 100,000 and prices have shifted from the overbought zone to the oversold zone. Silver is expected to continue its rebound up to Rs 92000 and Rs 94000.

 

Support and Resistance

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.

Share on