Gold oscillates around $2500 post-US NFP data

Fundamental News and Triggers

  • Gold oscillates around $2500 (~Rs 72000) based on mixed economic indicators from the US. The mixed US employment data decreased the chances of a greater 50 basis point rate cut by the FED.
  • This results in a minor rise in US Treasury bond rates, which helps the US Dollar build on Friday’s rebound from a one-week low and works as a headwind for the yellow metal.
  • The US Bureau of Labor Statistics said on Friday that nonfarm payrolls increased by 142,000 in August, compared to the predicted 160,000 and the prior month’s downwardly revised total of 89,000.
  • According to the CME Group’s FedWatch tool, markets are pricing in a 70% possibility of the Federal Reserve cutting rates by 25 basis points later this month, with a 30% chance of a 50-basis-point drop.
  • Any following decline in the prices might be viewed as a buying opportunity at the $2470 (~Rs 71000) horizontal support.

 

Technical Triggers

  • Gold faces a major upward hurdle at $2530 (~Rs 72500), indicating the five-month-old ascending channel’s upper border and an all-time high. Sustained trading above this level might lead to the $2600 (~Rs 75000) psychological threshold while strong support is found around $2470 (~Rs 71000).
  • Silver is gradually recovering from very important support of $28 (Rs 82500) and heading towards its resistance zone around $30.5 (Rs 88000).

 

Support and Resistance

 

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