Gold stands tall near a record high above Rs 71000

Fundamental News and Triggers

  • Given the ongoing geopolitical concerns, the gold price is expected to stabilize after making significant recent gains that sent it to an all-time high on Monday. The US dollar is supported by high bond rates, which also limit the increase in gold prices. 
  • The possibility of a new uptick in Middle East geopolitical tensions has increased as a result of Iran’s military threats against Israel following an alleged attack on its embassy in Syria. The safe-haven gold price may thus continue to be supported by this, limiting any potential correction. 
  • With the yield on the benchmark 10-year US government bond reaching its highest point since late November, the markets are now pricing in a roughly 50% likelihood that the Fed will maintain the policy rate in June. 

Technical Triggers

  • As forecasted, gold has achieved the short-term target of $2350 (Rs 71000), next target is $2400 (Rs 72500). But as oscillators are in an overbought zone, one needs to be very cautious for price retracement. 
  • Silver prices have finally given a break out above $27 (~Rs 80000), if that is sustained, then no one can stop Silver from moving towards the $30 (~Rs 90000) targets in April. But as oscillators are in an overbought zone, one needs to be very cautious for price retracement. 

Support and Resistance



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