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
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