Fundamental News and Triggers

• The medium- and long-term outlook for precious metals is still positive, though. A major factor influencing this confidence would be a possible change in the Fed’s monetary policy as a result of the recent negative US economic data. This data covers GDP growth, labour market conditions, and inflation rates, all of which have fallen short of expectations.
• April saw a correction in gold and silver prices, especially in the second half of the month. This retreat comes after a run of robust gains and aligns with a little strengthening of the US dollar following the Fed’s decision to stick with its aggressive policy. Further reducing demand was the diminished purchasing activities of central banks such as China’s.

 

Technical Triggers

• For more than two weeks, the price of gold has been stabilizing and ranging between $2300 and $2360. If the lower barrier is broken, it may indicate that the negative trend will continue, with $2250 being the next possible objective. On the other hand, a rise over $2360 would open the door for a retest of previous highs above $2400.
• The next obstacle for the bulls is $28.70, where a resistance zone has developed. Nonetheless, a breach of the crucial $26 support level would indicate a substantial decline.

 

Support and Resistance

 

 

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