Fundamental News and Triggers

• Gold and silver prices have recovered from last week’s lows since metal prices are sensitive to both economic growth and geopolitical tensions. Furthermore, it appears that market players are completely focused on this week’s first FOMC meeting of the year.
• Yesterday’s fourth-quarter GDP report highlighted a solid economy in the United States, which increased at a rate of 3.3% in Q4.
• Geopolitical tensions in the Red Sea have escalated, with a report today stating that Houthi insurgents fired a ballistic missile at the USS Carney in the Gulf of Aden on Friday. Although the ballistic missile was successfully shot down, it marks the 37th hit against merchant and US Navy ships since November 19.

Technical Triggers

• Gold prices have recovered from 38% ($2010) Fibonacci retracement, prices need to sustain above 23.6% ($2055) Fibonacci retracement to head higher.
• Silver is trading at the resistance level of $23. If prices sustain above this level, the next resistance would be $24.

Support and Resistance

 

 

 

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