Fundamental News and Triggers

• Gold and Silver struggle to hold gains but Geopolitical risks, trade war fears and Fed rate cut bets continue to support the prices.
• The growing market confidence that the Federal Reserve will deliver a third consecutive rate cut at the end of the December policy meeting next week turns out to be one of the main factors that benefit the precious metal.
• Other factors that increase demand for safe havens include geopolitical risks related to the Russia-Ukraine war and Middle East tensions, as well as worries about US President-elect Donald Trump’s tariff plans.
• US-provided missiles have been fired by Ukraine, aiming for key locations far inside Russian territory. After a month of fierce battle, Russian forces are getting closer to Pokrovsk, a crucial city in eastern Ukraine. Due to speculation that the Federal Reserve would reduce borrowing costs after the December meeting, this represents a major increase in global tensions and causes some haven flows towards the price of gold.

 

Technical Triggers

• Gold is pausing this rally and is likely to get supported by around Rs 77300.
• Silver prices were not able to sustain above the resistance of $32.30(Rs 96500) and hence corrected. The next level to watch for is $30 (Rs 89000-89500) on the downside for a few days now.

 

Support and Resistance

 

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