Gold jumps on risk aversion

Fundamental News and Triggers

  • Gold price jumped 1% towards a record high again amid risk-off sentiment. According to a White House spokesperson, Iran may conduct a significant strike on Israel this week, potentially disrupting ongoing Gaza peace talks set for August 15.
  • Markets are anticipating US inflation data to determine if the Federal Reserve will raise interest rates, following a dismal employment report that sparked recessionary worries and increased bets on rate cuts. The US PPI is coming on Tuesday, followed by the US CPI on Wednesday, and could give new insights on the Fed’s policy path.

 

Technical Triggers

  • Gold continues its uptrend and is expected to soon touch new highs above $2500 (Rs 71000).
  • Silver prices have been trading in a downward-slopping channel for the last three months after hitting a record high in May. $26.5 (~Rs 78000) is very strong support, which silver prices are maintaining, which is required to maintain an uptrend. The next resistance is $28 (Rs 81700).

 

Support and Resistance

 

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