Gold on the verge of important support

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Gold and Silver – Kya Lagta Hai

Short-term View (up to 1 week) – Positive – Gold is trading at important support of $1670, if prices sustain below these levels, it can fall towards $1620. Long-term View (3-4months) – Positive –Any dips towards 49000 and 52000 should be used as buying opportunities for the target of 52000 and 60000 for Gold and Silver respectively by year end.

SPOT Prices
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and Triggers
  • International News – – U.S. Treasury prices climbed as investors’ fears about the prospects for a global recession intensified while they also prepared for a massive U.S. interest rate hike from the Federal Reserve. The warning came at a time when investors were already jittery ahead of a Fed meeting after which the central bank is widely expected to raise rates by 75 basis points.
  • Demand & Supply– Probability of 100 bps rate hike by FED has increased from 0% to 25% after CPI data release.
  • Economic Data – The consumer price index was up 8.3% from a year earlier, driving the annual core inflation rate up to 6.3% from 5.9% in July. That’s the highest it’s been since the 40-year high that it hit in March.
  • Domestic News– India’s gold imports in August halved from a year earlier to 61 tonnes as volatile local prices and a weak rupee prompted consumers to postpone purchases.

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