Gold sees profit booking on improving risk appetite

Fundamental Q News and Triggers

Yesterday, Fed Chair Powell gave a clear indication to the market that the Federal Reserve is done raising interest rates, which calmed global markets.

Powell’s speech helped improve mood throughout markets that have recently been troubled by geopolitical worries, steeply increasing Treasury rates driving the prospect of economic contraction, and a mixed earnings season. This comes after a lesser-than-expected ISM manufacturing reading earlier in the day.

However, precious metals reacted quite mutedly to the possibility of a rate peak, which is typically viewed as favourable for investment metals.

Technical Triggers

As Gold prices have broken important support of 60700, prices can retrace up to levels of Rs 60200,
due to the profit-booking of this steep rally.

Silver prices are also consolidating in a range, and if it sustains above 72000, can rise to 73500. While
if it sustains below 70900, can retrace up to Rs 70000 due to profit booking.

Support and Resistance





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