Fundamental News and Triggers

• The gold price is consolidating after reaching a new high of $2590 (~Rs 73750), as bulls get cautious ahead of the critical FOMC policy meeting commencing today. Investors are now pricing in a higher probability of an enormous interest rate decrease by the Federal Reserve on Wednesday.
• According to CME Fedwatch, traders expect the Fed to decrease rates by 50 basis points (68% likelihood) and 25 basis points (32% chance) after its meeting on Wednesday.
• This keeps US Treasury bond rates near one or two-year lows and prevents the USD from seeing a major recovery, which should continue to support the gold price.
• Aside from that, risk-averse traders should exercise caution due to concerns about a slowdown in China, political instability in the United States, and significant geopolitical threats from ongoing Middle Eastern wars.

 

Technical Triggers

• Gold is moving towards its next resistance level of $2600 (~Rs 75000) as it has cleared $2550 (Rs 72500) resistance.
• Silver has gained momentum along with gold and moving towards $32 (~Rs 92000). Buy on dips around $30(~Rs 85000).

 

Support and Resistance

 

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