Fundamental News and Triggers

• Gold prices reached new highs of $2150 yesterday as investors bet on a March Fed rate cut and new geopolitical tensions between the Yemeni Houthis and the US.
• Meanwhile, according to a recent WGC study, 24 per cent of global central banks want to boost their gold reserves in the next 12 months, as they become increasingly sceptical of the US Dollar as a reserve asset. This optimistic news supported the gold price.
• Gold and Silver prices dropped later in the day, as it was in overbought condition and profitbooking followed.

Technical Triggers

• Gold prices have dropped $100, after hitting a record high, as the prices were in overbought condition. Profit booking followed and took the prices to touch $2040 on the downside. One should be cautious and wait for new trading opportunities.

As suggested in the last report, Silver resistance was $26(Rs 78000), that target was achieved yesterday. Later the prices corrected to $25 (Rs 76000), and now there are growing chances of prices correcting to $24(Rs 74000).

 

 

 

 

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