Investment Demand and Speculative demand rising for Gold

Fundamental News and Triggers

According to weekly CFTC data, money managers increased their bullish gold bets by 1414 net-long positions to 100,619, a five-week high that reflects a healthy appetite for gold.

Furthermore, Chinese demand for physical gold should continue to be positive for gold this year. In May, the People’s Bank of China (PBoC) announced that it purchased 16 tonnes, marking the seventh month in a row. Its current gold holdings total 2,092 tonnes.

The FED has been very clear that it will consider incoming data on inflation (especially core PCE) and labour when determining the pace of its policy. A lower-than-expected reading for either/both of the upcoming inflation data and labour prints should boost gold as well. The FED should need to lower interest rates if both inflation and the labour market are weakening.


Technical Triggers

As stated, Gold has cleared resistance of Rs 59600, the next level to look for is 60,000 and 60500

Silver has started its new bull run, crossing all major resistance. The next level to watch for is $26 (Rs 78000), if that is cleared, we can see prices touching $30 (Rs 88000-90000) as the next target.


Support and Resistance





Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, 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 above-mentioned opinions are based on the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and 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 an 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 no way guaranteed. No guarantee of any kind 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 purpose and are not to be construed as investment advices.


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