Fundamental News and Triggers
•As a result of the disappointing economic data, the gold market has experienced a strong rebound off of support just above $1950. After reading 51.9% in April, the ISM PMI dropped to 50.3% last month. Economists expected an increase of 52.6%, according to consensus estimates.
•Over the past week, there has been a noticeable increase in the probability that the Federal Reserve will implement its first interest rate hike pause since March 2022. The probability of a rate pause was 35% a week ago, 75% on Friday, and 77% today, according to the CME’s FedWatch, which predicts that the Fed will stop raising rates after 10 consecutive increases at each FOMC meeting since last year. This is supporting for Gold and Silver prices.
• Gold prices have rebounded from important level of $1936 last week, which is critical support at the uptrend line bullish rally from $1620 to $2085. Next critical resistance is $2000, to continue uptrend. Buy on dips.
• Silver prices retraced 38.2% to $23 of its rally from $18 to $26.4 last week. Prices have rebounded this week to head higher towards Fibonacci resistance level of $24.4.
Support and Resistance
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