Fundamental News and Triggers

• Gold reached almost $3300, close to a two-week high and continuing its more than 2% advance, helped by escalating geopolitical threats and the US dollar’s ongoing weakening.
• Last Friday, Moody’s reduced the US credit rating from AAA to AA1, which lowered risk perception and increased demand for gold.
• According to reports, Israel is preparing to attack Iranian nuclear sites, which might lead to retaliation from Iran and deepen the Middle East crisis.
• Geopolitical fears were heightened when President Trump announced that Russia and Ukraine would start peace negotiations right away, but he seemed to be hinting that he would withdraw from mediating the three-year conflict.

Technical Triggers

• Gold prices may drop to $3200 (~Rs 92000) if they remain below $3265 (~Rs 94000). And we are expected to see a $200 decline from those levels up to $3000 (~Rs 86000) if prices break and hold below $3200, which is the Double Top formation’s neckline support.
• Silver prices are expected to continue trading in the range of $32(~Rs 94000) and $34(~Rs 98000) as there is no trigger for silver markets.

Support and Resistance

 

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