Gold heading towards $2000 on safe-haven demand resurgence

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.


Technical Triggers

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


Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, 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 above-mentioned opinions are based on the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and 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 an 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 no way guaranteed. No guarantee of any kind 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 purpose and are not to be construed as investment advices.


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