Gold fades momentum but is still supported at $2650

Fundamental News and Triggers

  • Gold prices lost steam as the US Treasury bond rates spiked higher in September due to the spectacular Nonfarm Payrolls data. A 50-bps decrease is currently off the table, but market expectations of a 25-bps Fed rate drop are still strong at 83.5%.
  • A risk-off sentiment is supported by the expansion of the Middle East war including Israel, Hamas, and other parties such as the Houthis.
  • The Middle East conflict has negatively impacted market sentiment and supported bullion prices. As Israel persisted in its ground operations in Lebanon and Hamas fired missiles at Tel-Aviv, the gunfight dragged on. Hopes for a ceasefire diminished when the fighting spread and included other organizations like the Houthis, who were assaulting ships in the Red Sea.

 

Technical Triggers

  • Gold remains supported around $2650 (~Rs 75400) and resistance is around $2700 (~Rs 76500).
  • Silver is trading in the range of $31(~Rs 91500) and $33(~Rs 95000). Either side breakout will set the direction.

 

Support and Resistance

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.

Share on