Gold rallies above $1700 as dollar weakens amid election jitters
Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Rebound – – Silver prices have sustained a breakout above its downtrend channel after six months
Long-term View (3-4months) – Positive – – – Any dips towards 51000 and 55000 should be used as buying opportunities for the target of 55000 and 65000 for Gold and Silver respectively in long-term.
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and Triggers
International News – – – Gold prices jumped to a one-month high yesterday, benefiting from resurgent safe haven demand and a weakening dollar as investors awaited the results of the U.S. midterm elections, with broader metal prices also gaining.
Economic Data – – – Markets are now pricing in a nearly 60% chance the central bank will raise rates by 50 basis points (bps) in December, smaller than November’s hike of 75 bps. CPI inflation data due on Thursday is expected to shine lighter on this front. The reading is widely expected to show inflation remained stubbornly high in October, which could see the Fed position for a bigger rate hike.
Midterm elections – While markets are broadly expecting a mixed result, a clear-cut majority for the incumbent Democrats or re-elected Republicans could herald changes in monetary and fiscal policy.