Gold gets some impetus on escalating geopolitical tensions

Fundamental News and Triggers

  • The US employment growth in April was not as strong as anticipated, according to figures released last week, and the unemployment rate increased from 3.8% to 3.9%. The information supported predictions that later this year, the Federal Reserve (Fed) will start cutting interest rates.
  • The CME FedWatch Tool indicates that market players are now pricing in a 67% possibility of a rate cut by the Fed in September.
  • Israel is getting ready to go into action in the region of Rafah. Israel has been advised by the majority of Arab and some European nations not to launch a military operation in Rafah due to concerns that it would result in several fatalities. Israel’s stance is unchanged, notwithstanding. Israel is independent. These changes in geopolitics lend considerable support to gold.

 

Technical Triggers

  • Gold prices have strong support around $2290 and resistance around $2360, prices need to break this range for a new rally.
  • Silver prices have strong support around $26.30 while resistance is at $27.70, prices need to break this range for a new rally.

 

Support and Resistance

 

 

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