Fundamental News and Triggers

• Iran’s attack on Israel increased demand for safe havens, which in turn drove up the price of bullion, although significant increases were hampered by the strength of the dollar. Although it appears that most of the tension between Iran and Israel has been priced into gold prices, fresh friction or retaliation would likely drive prices higher. 
• Iran’s drone and missile strike on Israel over the weekend, which was purportedly retaliation for an attack on an Iranian embassy in Syria, was the primary driver of gold prices. 
• Ahead of this week’s meetings including many Federal Reserve officials, investors were waiting for details in the hopes of learning more about the Fed’s future course of action. Relentlessly robust economic indicators, such as increasing inflation and robust retail sales, prompted markets to reassess their projections on the timing and magnitude of the Fed interest rate cut this year

Technical Triggers

• In a technical sense, overbought circumstances continue to exist for silver and gold. Therefore, there’s a chance that a downward correction may happen soon.
• One should be very cautious in creating long positions, as we can see correction anytime.

Support and Resistance

 

 

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