Gold trades back and forth with a focus on Employment data

Fundamental News and Triggers

  • The price of gold fluctuates as rising US Treasury yields reduce its allure in the face of erratic Fed policy. As US Treasury bond rates increase, prices decline, and traders reduce their projections that the US Federal Reserve would cut borrowing costs by 25 basis points at its next meeting in December.
  • The remarks made by Fed Chair Jerome Powell on Wednesday set a ceiling on the price of bullion. He stated that the economy is still strong and that he is pleased with the state of the economy and monetary policy.
  • The US economy is expected to have added 200K new workers today, which is much more than the 12K added in October, according to the employment data that was released today. According to estimates, the unemployment rate has risen from the previous publication of 4.1% to 4.2%.
  • Given the South Korean political unrest, the Syrian civil war, and tensions between Russia and Ukraine, the decline in the price of gold and silver is anticipated to continue to be well-supported.

 

Technical Triggers

  • Gold prices are expected to be rangebound and consolidate between $2600 (~Rs 75000) and $2200(~Rs 77600) for the next few days with positive bias. There may well be another shoe to drop after all before the balance of risks shifts back towards the upside in Gold.
  • Silver prices are expected to be rangebound and consolidate between $30(~Rs 90000) and Rs $32(~Rs 94000) for the next few days.

 

Support and Resistance

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.

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