Fundamental News and Triggers

• The positive US labour market report on Thursday reduced fears of a recession and increased investor confidence, leading to a risk-on sentiment.
• However, investors are still concerned about the risk of escalating geopolitical tensions in the Middle East, which could dampen market optimism. The Federal Reserve’s September rate cut has already been fully priced in by the markets.
• The markets have fully priced in a 25-basis-point rate drop by the Federal Reserve in September and are betting on a 50-bps rate decrease, which would bolster the gold and silver prices.

 

Technical Triggers

• Buy on dips and sell on rallies should be the strategy used in Gold. $2350 (~Rs 68000) and $2400 (~Rs 69000) remain very strong support buying zone and $2500 (~Rs 71000) is a very strong resistance selling zone.
• Silver prices have been trading in a downward-slopping channel for the last three months after hitting a record high in May. $26.5 (~Rs 78000) is very strong support, which Silver prices are maintaining, which is required to maintain an uptrend.

 

Support and Resistance

 

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