Fundamental News and Triggers

• The minutes from the FED’s meeting in June revealed that almost all of the board members favoured continuing to raise interest rates this year, citing persistent inflation and unexpected strength in the labour market.

• Despite expecting a rate increase of at least 50 basis points (bps) this year, the FED held interest rates steady in June. Given that they increase the opportunity cost of holding non-yielding assets like gold, rising interest rates are bad news for them.

• The fears of recession are rising, as US yield curve has inverted to 42 year low this week, as FED continues to increase interest rates.

 

Technical Triggers

• Gold prices have rebounded from strong psychological support of $1900 (~ Rs 57500) which was also 150 DMA, next resistance is $1950 (~ Rs 58700).

• Silver prices have very important support around $22(~ Rs 67000) which is also 200 DMA and a 50% Fibonacci retracement level of rally from $18 to $26. Prices have rebounded from that level heading towards next resistance of $23.40 (~ Rs 70700)

 

Support and Resistance

 

 

 

 

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