Fundamental News and Triggers
• Gold prices have rebounded amid safe-haven demand and as markets awaited more cues regarding the raising of the U.S. debt ceiling.
• In response to some profit-taking and in anticipation of the data, the dollar dropped from 10-week highs. The outlook for the FED, however, has become more pessimistic, which has helped to support the US dollar while last week dimming it for non-yielding assets like gold.
• This week also saw a flurry of U.S. economic readings, with the nonfarm payrolls data for May, which are due on Friday, expected to have a significant impact on the Federal Reserve’s plans for additional rate hikes.
• Gold prices have rebounded from important level of $1936 last week, which is critical support at the uptrend line bullish rally from $1620 to $2085. Next critical resistance is $2000, to continue uptrend. Buy on dips.
• Silver prices retraced 38.2% to $23 of its rally from $18 to $26.4 last week. Prices have rebounded this week to head higher towards Fibonacci resistance level of $24.4.
Support and Resistance
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