Fundamental News and Triggers

• The Federal Reserve’s jumbo rate cut on Wednesday and expectation for another 50 basis points drop in borrowing costs by the end of this year has helped precious metals prices to continue high.
• Meanwhile, the Fed’s excessive rate decrease increased fears about economic growth, which, along with persisting concerns about a downturn in China, aided the safe-haven gold market.
• Furthermore, geopolitical tensions arising from Middle Eastern tensions and the Russia-Ukraine conflict operate as a tailwind for the precious metal as the US political landscape becomes more unclear ahead of the November presidential election.
• Aside from that, the fact that various Asian central banks and Russia are purchasing gold to decrease their dependency on the USD benefits optimistic traders and enhance possibilities for a further short-term appreciating advance.

 

Technical Triggers

• After touching the $2600 target, gold prices are now expected to see some profit booking and retracement up to $2500 (~Rs 71800) and $2475 (~Rs 71000)
• Silver has resistance at $31.5 (~Rs 90000) and support at $30 (~Rs 86000). Prices are expected to trade in this range with weak bias.

 

Support and Resistance

 

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