Fundamental News and Triggers
- A weaker US currency and falling Treasury yields helped gold bounce back to $3350. However, the rationale against rate cuts was questioned by June’s low consumer confidence, which sparked worries about the labour market and trade policy.
- Despite political pressure, Fed Chair Jerome Powell remained cautious during his second day of testimony, stating that the Fed can control inflation brought on by tariffs but is not yet prepared to lower rates.
- To curtail Tehran’s nuclear program and ease Middle East tensions, US and Iranian officials are scheduled to meet next week. This comes as geopolitical tensions are beginning to ease. Although the ceasefire between Israel and Iran seemed to be holding, questions remained about how long it would last.
Technical Triggers
- If gold prices hold below $3330 (~Rs 97000), they may retrace to $3275 (~Rs 96000). However, it may go towards $3340 (~Rs 99000) if prices continue to rise beyond $3385 (~Rs 98000).
- For the bull trend to continue, prices must maintain the support of $35.50 (~ Rs 105,300). The next downward level, if this support is breached, is $34.50 (~Rs 104,000). Prices may increase to $36.75 (around Rs 107,500) on the upside.
Support and Resistance
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