Fundamental News and Triggers

• In Syria, various rebel factions are beginning negotiations to form a government while foreign powers like Israel and Turkey take positions. The increasing uncertainty in an already volatile region is supporting demand for the safe-haven metal.
• After a six-month a pause, the People’s Bank of China raised its gold reserves in November as the nation unveiled intentions to loosen its monetary policy. The increase in reserves in November equates to purchases of five tons of gold.
• Silver prices traded near $32 per ounce on Tuesday, staying close to one-month highs as Chinese policymakers unveiled plans for additional economic stimulus, improving the demand outlook in the world’s top metals consumer.

 

Technical Triggers

• A weak market sentiment is favoring a renewed upward impetus in gold prices.Gold has broken its consolidation trading range by breaking the barrier of $2720 (~Rs 78000). The next target is $2760 (~Rs 79500).
• Silver prices have given a breakout from its one-month range of Rs 87000 to Rs 94000. Prices need to sustain above Rs 94000 to continue its rally towards Rs 96500.

 

Support and Resistance

 

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