Fundamental News and Triggers

• Gold and silver prices fall to multi-week lows, as the Dollar Index rises to a four-month high. The current electoral vote total is 227 for Trump and 189 for Harris, with the former US President in command.
• With Trump’s election, US Treasury bond rates have risen due to fears about potential inflationary tariffs and deficit spending. The US election results clear off a key source of political uncertainty for markets, prompting a new wave of risk-on trading and adding to limiting the precious metal price.
• However, Trade wars may affect financial markets more abruptly and unexpectedly than physical battles. Persistent deficit expansion or trade concerns may create volatility in the currency, perhaps sending investors back to gold and silver as hedges against economic uncertainty.

 

Technical Triggers

• As suggested yesterday, Gold and Silver are heading for a correction, exactly what happened. Bullion prices could continue their southward journey as they were in an overbought zone for a long period.
• Gold has broken important support of $2720 and now heading towards $2620(~Rs 74800) and $2500 (~Rs 71500) this month. These lower levels could be used by long-term investors for accumulation.
• Silver has broken important support of $33, now heading towards $31 (~Rs 91,000) and $30 (~Rs 88000). These lower levels could be used by long-term investors for accumulation.

 

Support and Resistance

 

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