Fundamental News and Triggers

• After recording eight consecutive weekly climbs, gold is currently down 2.5% for the week. But in February, prices have increased by 2.2%.
• US inflation is still on the rise, which supports the Fed’s decision to keep interest rates unchanged. This pushes the non-yielding gold price to a two-week low on Friday and helps the US dollar build on its comeback from a two-month low.
• According to the second reading of the US GDP released by the US Bureau of Economic Analysis, the economy grew by 2.3% annually in the last quarter of 2024, as originally predicted.
• This is in addition to concerns that the actions of US President Donald Trump may cause inflation to spike again. Moreover, Fed policymakers are still cautious about lowering interest rates in the face of sticky inflation, which keeps the USD strong and pushes money away from the non-yielding yellow metal.

 

Technical Triggers

• Gold prices have broken the important support of $2885 (Rs 84900), next support level is $2830 (~Rs 83500).
• Silver continues to trade in the range of $31.5 (~Rs 93000) and $34(~Rs 97000).

 

Support and Resistance

 

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