Fundamental News and Triggers

• Gold prices respond little to the Fed’s rate hold, suggesting that rate hikes may be paused in the future. Inflation language that traders saw as suggesting the Fed would maintain higher rates for an extended period was eliminated as the Federal Reserve unanimously agreed to maintain rates at the 4.25% to 4.50% range.
• As the trade and fiscal landscapes change, Fed Chair Powell takes a measured approach to policy. In anticipation of forthcoming economic data, investors concentrate on Powell’s predictions for future Fed measures.
• Investors anticipate 50 basis points of easing through 2025, according to the CME FedWatch Tool, with the first-rate decrease occurring in June.
• Elsewhere, the European Central Bank is almost set to lower interest rates later today and is probably going to continue to loosen policy.

 

Technical Triggers

• Gold prices have been trading in a range of $2725 to $2780 from the last few days, while it has risen from Rs 78400 to a record high of Rs 80400 in the last 10 days due to rupee depreciation. Further upside momentum is expected to continue towards $2800 (Rs 81000) this week.
• Silver Future prices are trading in a range of $29.5 (Rs 89000) to $31(Rs 93000) from the last month. Prices need to sustain above $31 to start their bullish momentum towards $32 (~Rs 96000).

 

Support and Resistance

 

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