Fundamental News and Triggers

• Gold price meets some supply, snapping a nine-day winning streak and reaching a record high. The drop could be linked to profit-taking ahead of the key US CPI report. Bets on a June Fed rate drop will keep USD bulls on the defensive and should provide support.
• Last week, Federal Reserve policymakers stated that they remain data-dependent and want to be confident that inflation is consistently tracking toward the Fed’s 2% target. As a result, today’s inflation report is important since rising inflation might lead to a drop in gold prices.

Technical Triggers

• As stated before, gold has touched the target of $2200. Now we could see some profit-booking and retracement towards $2150 (~Rs 65000) before the prices could see another runup.
• Silver prices also break the range and give a bullish breakout to $24. Prices are expected to continue positive momentum till $25 in the short term.
• Long term bullish view is still intact with a target of $2300 (~Rs 70000) in Gold and $30 (~Rs 90000) in Silver in 2024.

Support and Resistance

 

 

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