Fundamental News and Triggers
Gold touches a new record above $4500, and Silver above $70
- Gold prices surpassed $4500 (~Rs 138,000) for the 50th record-breaking session this year, while silver reached a new high of $70 (~Rs 216,000) due to expectations of looser US monetary policy and rising geopolitical tensions.
- Markets are presently pricing in two quarter-point rate cuts by the Federal Reserve next year, despite evidence of softening inflation and a cooling labour market.
- Rising tensions between the US and Venezuela have also boosted safe-haven demand, as Washington tightened its naval blockade of the region with the seizure of a second oil tanker on Saturday and the active pursuit of a third.
- Investors are now focusing on the second estimate of third-quarter US GDP, which is due later today and might provide further insight into the health of the US economy and the future course of Fed policy.
Technical Triggers
- As suggested, Gold has touched the target resistance of $4500 (~Rs 138,000). Gold broke its previous high of $4400, after two months of consolidation between $3935 and $4400, so this rally is expected to extend further towards $4575(~Rs 140,000) and $5000(~Rs 150,000) in a few weeks.
- As suggested, Silver has touched the first target resistance of $70(~Rs 216,000). If Silver continues its bullish momentum, the next target is $72 (Rs 223,000). The uptrend is intact until prices are trading above $67.50 (~Rs 209,000) support.
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