Fundamental News and Triggers

• The gold prices have rebounded after touching their peak of $2708 (~Rs 76500) as US economic data of GDP and Jobless Claims numbers predicted better recovery in the US.
• The US GDP reached 3% in Q2, beating expectations of 2.9%. US durable goods orders were constant at 0% in August, beating estimates of a -2.6% contraction but falling short of July’s 9.8% gain.
• The jobless claims for the week ending September 21 were 218K, falling short of expectations for a 225K increase and the prior figure of 222,000.
• Market investors have completely priced in at least a 25-basis point rate drop by the Federal Reserve. According to the CME Fed Watch Tool, the odds of a 50-bps cut have dropped to 51.3%, down from 60% the day before.

 

Technical Triggers

• After touching the $2700 (Rs 76000) resistance, we can see a correction and profit booking. Prices are in the overbought zone and we can see a retracement up to $2600 (~Rs 73500) and $2500 (~Rs 71000) anytime soon.
• Silver has touched its resistance level of $33 (~Rs 96450) and rebounded from that level. The next support is $31 (~Rs 92000).

 

Support and Resistance

 

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