Fundamental News and Triggers

• Gold’s appeal as a safe-haven asset was weakened by the hope for a ceasefire between Israel and Hezbollah. The Israeli Defense Force ordered the evacuation of a southern Beirut district with strong ties to Hezbollah on Tuesday morning, despite the ceasefire talks. Furthermore, Israeli troops have carried out strikes in the past 24 hours that have killed at least 31 persons in Lebanon, 11 in Gaza, and two near the Syrian border. Because of this, gold is once again being bought in safe havens.
• Today’s release of the most recent FOMC minutes could provide additional guidance for gold prices and suggest that should inflation continue to be high, the Fed may halt rate reductions and maintain them at restrictive levels.

 

Technical Triggers

• Gold is showing very volatile moves with support at $2600. Prices are expected to trade in the range of $2600 (~Rs 75000) and $2700(~Rs 77000) for the next few days.
• As suggested, Silver has strong support at $30 (~Rs 87500), prices have rebounded and are expected to consolidate between Rs 88000 and Rs 92000 for the next few days.

 

Support and Resistance

 

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