Gold touches new record high above $2500

Fundamental News and Triggers

  • Gold prices have reached new highs above $2500 in international markets as investors flee to safety as tensions between Iran and Israel escalate. Iranian Supreme Leader Ali Khamenei ordered an immediate strike on Israel after Hamas chief Haniyeh was killed.
  • Bank of Japan also surprised markets by hiking interest rate by 15-basis points yesterday, which triggered a huge sell-off in the USD/JPY pair and supporting gold prices.
  • Furthermore, the Fed ended its meeting yesterday with the fed funds rate remaining between 5.25% and 5.5%. Fed Powell acknowledged that inflation is still “somewhat elevated” despite the easing and the interest rate path ahead will depend on the way how the economy evolves.

 

Technical Triggers

  • As suggested yesterday, gold has achieved in target of $2500 (Rs 70000). We are likely to see some profit booking towards $2460 (~Rs 69000) before prices move ahead.
  • Silver rally which started from Rs 68000 to Rs 96000 in 2024, has almost retraced 50% to around Rs 82000. Silver prices seem to have formed a base around $27.5 (~Rs 80300) in the short term and a rebound is expected from here with the next resistance of Rs 86000.

 

Support and Resistance

 

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