Fundamental News and Triggers

• Gold is just 1% away from its all-time high of Rs 80000, after a modest core inflation reading this week that boosted bets for a more dovish Federal Reserve policy. The most recent U.S. economic data put additional pressure on Treasury yields, pushing gold prices to a more-than-month high.
• Elsewhere, Israel also alleged Hamas is putting the ceasefire agreement in Gaza in danger by causing a last-minute crisis. As a ceasefire agreement to end the 15-month conflict was announced, Israeli airstrikes in Gaza killed at least 77 civilians.
• Following the muted December inflation figures reported earlier this week, the US Federal Reserve is expected to implement two interest rate cuts this year, which serves as a buffer against the decline in the price of gold. The price of gold is supported by dovish Fed bets that keep pushing the US dollar and Treasury bond yields lower.

 

Technical Triggers

• As suggested yesterday, Gold has given a breakout from its symmetrical triangle. $2760 Target almost achieved. The next target is $2800 (~Rs 80000).
• Silver prices have given a bullish breakout from its symmetrical triangle pattern by trading above $30.5 (~Rs 92500). If prices sustain above this level, we could see more gains up to $31.3 (~Rs 94500) and $32.3 (~Rs 97500).

 

Support and Resistance

 

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