Gold retreats, but is still in a bullish trajectory

Fundamental News and Triggers

  • Opinion polls predict a close fight for the White House with less than two weeks until the US presidential election on November 5. Together with Middle East tensions, this further exacerbates political unpredictability, which might continue to support the safe-haven precious metal.
  • In addition, the announcement that North Korea has dispatched troops to Russia to possibly join the conflict with Ukraine has escalated global threats and raised doubts about the US election.
  • Gold could profit as interest rates are expected to drop sharply worldwide, making it a more alluring non-interest-paying investment.
  • Another reason driving up the price of gold may be the attention on the BRICS 2024 summit in Kazan, Russia, where participants—particularly host Russia—are looking for a substitute for the US dollar’s hegemony. A currency backed by gold is being promoted as a potential substitute.

 

Technical Triggers

  • Gold prices have corrected from record highs, but they are still in a bullish trajectory until the support of $2717(~Rs 77600) and $2700(~Rs 77000) is not broken.
  • As suggested earlier, silver prices could see some profit booking at higher levels, exactly what happened yesterday. Prices need to sustain above $34.5(~Rs 98500) to continue the uptrend or if it sustains below $33.60 (~Rs 96500), we could see more profit booking to $33(~Rs 94800).

 

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.

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