Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) -Rangebound–– Gold is again trading in same range 50200 to 51200 and silver range is 59000 to 62500
Long-term View (3-4months) -Positive – Any dips towards 50000 and 60000 should be used as buying opportunities for the target of 55000 and 70000 for Gold and Silver respectively
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and Triggers
Precious Metals appreciates after the FED 75 bps rate hike
- International News – Gold climbed roughly 1.5% to reach $1840, while silver scrambled over 4% higher to hit $21.84 after the Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point, the sharpest hike since 1994, as it seeks to combat the fiercest surge in U.S. inflation in four decades.
- Demand and Supply – – – Most analysts believe that a recession is coming sooner rather than later, gold’s long-term outlook doesn’t look to bad. Looking at the Fed funds futures curve, markets very much remain of the opinion that after some aggressive near-term hiking from the Fed coupled with a recession over the next 12 or so months, US inflation should come eventually come under control, giving the Fed the space to then cut interest rates in the longer-term.
- Economic Data – – The Fed had previously suggested it was likely to boost rates by half a percentage point at each of its three meetings this year, but recent signals that inflation is accelerating spurred policymakers to move more aggressively to slow economic growth in a bid to tame prices
- Domestic News– India imported 101 tonnes of gold in May, compared to 13 tonnes a year earlier due to Akshaya Tritiya and Wedding Season