Fundamental News and Triggers

• The gold price continues to trade in a confined range near the all-time peak of $2695 (~Rs 76000), with a cushioned downside. Expected Fed rate cuts of 50 basis points in November have weakened the Dollar Index and boosted gold prices.
• The US Dollar is struggling to maintain its rebound gains due to dovish Federal Reserve predictions and this has supported gold price.
• As a result, Fed Chair Jerome Powell’s speech today will be widely watched for new clues regarding the future rate-cut path and to decide the near-term outlook for gold.
• Rising tensions in the Middle East and fears about China’s economic recovery, despite recent stimulus plans, are supporting the safe-haven precious metal market.

 

Technical Triggers

• After touching the $2650 resistance, gold prices continue their bullish momentum to $2700 (~Rs 76000). 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 started its bullish momentum touching a high of $32.5 (~Rs 95000) getting support from the gold rally. The next resistance is $33 (Rs 96000).

 

Support and Resistance

 

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