Fundamental News and Triggers

• The price of gold retreats for a second day in a row as month-end flows favour the Dollar Index even as US Treasury rates are down.
• After Israel bombed Hezbollah’s headquarters in Lebanon and killed its commander, geopolitical tensions are still high. Bullion has not taken off, even if it justifies increasing gold prices.
• The likelihood of a 25 basis point rate cut has grown among market participants, from 46.7% to 56.4% in the previous session. The CME FedWatch Tool indicates that there is currently a 43.6% possibility of a greater 50 bps drop.

 

Technical Triggers

• Gold has dropped more than 2% after reaching its all-time high of $2707 (about Rs 76500), which might cause the yellow metal’s losses to continue towards $2600 (about Rs 73500). While the RSI is going lower and the short-term momentum favours bears, the Gold long-term trend is still positive. Traders should take advantage of the short-term move and be aware of this, but they should also remember that bulls are still in control.
• 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

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.