Fundamental News and Triggers
- Gold continues to remain around its recent record highs of around $2500, but its upward momentum is under threat as the US dollar seems oversold.
- However, Geopolitical concerns continue to boost gold prices, as protests erupted across Israel on Monday over the government’s inability to reach a ceasefire-for-hostages agreement with Hamas. The action is fueled by the assassination of six captives in Gaza, whose remains were recovered by Israeli forces last weekend.
- Looking forward, the ISM Manufacturing PMI will be released on Tuesday. This week’s focus will be the US Nonfarm Payrolls for August, which may impact the Fed’s interest rate cuts and the gold price in the near term.
Technical Triggers
- Gold buyers must reclaim the record high of $2532 (Rs 72250) before confronting the next important hurdle at $2550 (Rs 72500). Acceptance over the latter might attempt the $2600 (Rs 75000) round barrier en route to the triangle goal of $2660 (Rs 76500).
- On the other hand, the initial demand level for gold buyers is predicted below $2500, below which last week’s low of $2485 (Rs 71300) will be tested. A sustained breach of the latter might expose the downside to the previously indicated triangle resistance-turned-support at $2468 (Rs 70900).
Support and Resistance
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