Fundamental News and Triggers

• A variety of divergent influences is affecting the gold price, which fluctuates within a range. USD bullishness caps the upside, but hawkish Fed predictions drove up US bond rates and inturn supporting the prices. Ahead of the crucial FOMC meeting tomorrow, geopolitical concerns provide some backing to the gold.
• It is anticipated by the market that the Fed will begin lowering key borrowing rates at its policy meeting in June. The PPI and CPI were surprisingly rigid in February, though, thus the likelihood of the rate cut in June has decreased dramatically. Before the inflation data was released, the probability of a rate decrease was 72%; however, according to the CME FedWatch tool, it is now just 57%.

Technical Triggers

• After touching record-high prices of $2200, gold is taking a breath and consolidating around high levels, before starting a new runup.
• Silver prices are facing a resistance zone around $25.50-$26 (~Rs 76000 – Rs 77000), prices need to sustain above this level to head higher.

Support and Resistance

 

 

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