Fundamental News and Triggers

• For the fourth straight day, the price of gold rises and reaches a new all-time high of $2727 (around Rs 77640). The yellow metal continues to gain from major central banks’ rate-cutting policies. Political unpredictability in the US and tensions in the Middle East give the commodity a further boost.
• The European Central Bank chose to decrease interest rates yesterday for the third time this year, which is the first time the rates have been lowered consecutively in 13 years. Given the deteriorating economic outlook, additional rate cuts are expected.
• In the meantime, the close contest between Donald Trump and Kamala Harris creates further uncertainty, which raises the price of gold to a record high in conjunction with the possibility of more Middle East war escalation.

 

Technical Triggers

• Gold prices have sustained above the resistance of $2700 (~Rs 77000) the next target is $2750 (~Rs 78500).
• Silver is moving towards the higher side of the range towards $32.5 (~Rs 93500). If prices sustain above this resistance, the next target is $33 (~Rs 95000).

 

Support and Resistance

 

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