Fundamental News and Triggers

• Gold prices touched an all-time high in India trading above Rs 60450/10 gm and one year high of $2014/oz at international markets amid uncertainty on the banking crisis and FOMC decision.

• This uncertainty arises from the upcoming FOMC decision on whether to pause or raise interest rates by 25bps. Second, and equally important, is the current banking crisis, which has now spread globally to include Switzerland’s Credit Suisse.

• Parabolic rally and volatility is expected to continue for 1-2 days until FED meeting, as there are lot of positions being squared off, margin call triggers, stoploss triggers, that are chasing the financial markets.

Technical Triggers

• Gold prices have run up 10% in last 10 days from levels of Rs 55000 to Rs 60450. We could see consolidation in prices today.

• Silver has underperformed than Gold in last 10 days, so its bull run is expected to continue. Next target for Silver is Rs 70000 and Rs 72000 in short-term.

Support and Resistance 

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