Fundamental News and Triggers

• As manufacturing activity increases, the U.S. dollar’s strong momentum may provide additional support for the gold market, which is still struggling. The PMI Index increased to 48.4 from 46.5 in October.
• The sentiment surrounding the Fed policy outlook appears to have taken centre stage in the wake of recent remarks by several Fed policymakers and ahead of the Nonfarm Payrolls report.
• Dovish Fed expectations tend to benefit the gold price. The next direction of the gold price is likely to depend on the upcoming US employment data and their impact on the Fed rate cut expectations. According to the CME Group’s FedWatch Tool, markets are currently pricing in a 75% probability of a 25 basis points rate cut later this month, up from roughly 65% two days ago.
• Gold traders are also cautious of the geopolitical tensions between Russia and Ukraine and Israel and Iran, which could have a strong impact on the traditional safe-haven asset, gold price.

 

Technical Triggers

• Gold is showing very volatile moves with support at $2600. Prices are expected to trade between $2600 (~Rs 75000) and $2200(~Rs 77600) for the next few days.
• As suggested, Silver has strong support at $30 (~Rs 87000), prices have rebounded and are expected to consolidate between Rs 88000 and Rs 92000 for the next few days.

 

Support and Resistance

 

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