Fundamental News and Triggers

• Last week, the price of gold and silver fell as renewed expectations of FED rate hikes boosted the outlook for the US dollar and US Treasury bond yields. This drove the price of gold down by almost $35.

• The CME’s FedWatch tool indicates an almost certain case of the US central bank raising interest rates by 0.25 percent in May amidst these plays. Nevertheless, the interest rate futures also reduce the likelihood that rates will be cut in late 2023 and support a longer break in the trajectory of rate increases following the upcoming rate increase.

Technical Triggers

• Gold prices continue its bull run, with two-step up and one step down. The next target is the immediate high of $2050 (Rs 60800) and the previous high $2070 (Rs 61500)

• Silver has cleared important resistance of $25 (Rs 74000), the next target to watch for is $26.3 (Rs 77500)

Support and Resistance 

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