Gold takes a breath, waiting for US Jobs data

Fundamental News and Triggers

  • The gold price is sustaining its recent recovery from an eight-day low of $2473 (Rs 71000) as traders respond to disappointing US ISM Manufacturing PMI data, raising fears about a potential ‘hard landing’ for the economy.
  • The ISM reported that the US Manufacturing Index increased marginally to 47.2 in August from 46.8 in July, but remained in contraction and fell short of the expected 47.5 print. Soft US statistics boosted predictions for a 50-bps interest-rate decrease by the US FED this month.
  • The gold price has stabilized following a three-day slump, as it awaits US employment data. The US Dollar is weak with Treasury bond rates, amid US and China woes-led risk aversion.

 

Technical Triggers

  • Gold prices are consolidating in the range of $2470 (Rs 71000) and $2530 (Rs 72500) from the last fifteen days. Prices need to give a breakout on either side for further direction.
  • Silver prices have fallen 10% in the last week having fallen from $30.5 (Rs 88000) to $28.5. Next support is $28 (Rs 82500) and $27(Rs 80500).

 

Support and Resistance

 

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