Gold reverses the losses and seesaws around $2500

Fundamental News and Triggers

  • Gold has recently recovered some ground and seesaws around $2500 after the US Bureau of Labor Statistics disclosed that the number of job openings in July fell significantly when compared to June’s downwardly revised statistics via the JOLTS report. Vacancies decreased from 7.910 million to 7.673 million (the lowest number since January 2021).
  • Market sentiment is negative, attributed to market rotation on worries of a US recession, and speculative positioning in gold has peaked for the time being. I believe that the growth in the dollar is putting pressure on the gold price.
  • According to CME FedWatch Tool data, the odds of a 50 basis point cut at the September meeting have risen to 43% or nearly a coin flip. The next FOMC meeting will be place on September 17 – 18.

 

Technical Triggers

  • Gold faces a major upward hurdle at $2530 (~Rs 72500), indicating the five-month-old ascending channel’s upper border and an all-time high. Sustained trading above this level might lead to the $2600 (~Rs 75000) psychological threshold while strong support is found around $2470 (~Rs 71000).
  • Silver prices have fallen 10% in the last week having fallen from $30.5 (Rs 88000) to $28.5. The next support is $28 (Rs 82500) and $27(Rs 80500).

 

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.

Share on