Fundamental News and Triggers

• Gold is still struggling, and prices could drop this week as the market takes a wait-and-see stance as the initial reaction to the U.S. credit rating fades and there is some hope that Ukraine and Russia could reach a truce.
• Following a two-hour phone call with US President Donald Trump on Monday, Russian President Vladimir Putin stated that attempts to put an end to the war with Ukraine were on the correct track and committed to collaborate with Ukraine on a memorandum pertaining to a peace agreement.
• In addition, U.S. Federal Reserve officials gingerly faced the implications of the most recent downgrading of the U.S. government’s credit rating and volatile market circumstances on Monday as they continued to manage an extremely unpredictable economic landscape.

Technical Triggers

• Gold prices may drop to $3200 (~Rs 92000) if they remain below $3265 (~Rs 94000) this week. And we are expected to see a $200 decline from those levels up to $3000 (~Rs 86000) if prices break and hold below $3200, which is the Double Top formation’s neckline support.
• Silver prices are expected to continue trading in the range of $32(~Rs 94000) and $34(~Rs 98000) as there is no trigger for silver markets.

Support and Resistance

 

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