Gold trading above Rs 76000 on Black Friday sale

Fundamental News and Triggers

  • Amid worries about a trade war and geopolitical uncertainties, the price of gold saw new bids on Thanksgiving Thursday and Black Friday. In retaliation to Ukraine launching Western weapons against its territory, Russian President Vladimir Putin stated Russia may deploy its new hypersonic missile to hit Ukrainian decision-making centres.
  • In addition, the recent drop in US Treasury bond yields and the Dollar Index, fuelled by the expectations that the Fed would reduce borrowing costs once more in December also provides more support for the yellow metal. The US Dollar Index is hovering at a two-week low around 106 due to the Fed’s potential to lower interest rates further.
  • Gold is affected by Trump’s tariff threats, but a shift in tone toward Canada and Mexico gives some relief.

 

Technical Triggers

  • Gold is showing very volatile moves with support at $2600. Prices are expected to trade between $2600 (~Rs 75000) and $2700(~Rs 77000) for the next few days.
  • As suggested, Silver has strong support at $30 (~Rs 87500), 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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