Fundamental News and Triggers
Precious metals at two-week low on dampening safe-haven demand
- Gold prices have fallen below $4000 and Silver $47 as bullion’s appeal as a safe-haven was somewhat diminished with indications of an easing of US-China trade tensions, and market players await this week’s Federal Reserve interest rate decision.
- Top Chinese and US economic officials worked on the terms of a trade agreement on Sunday, which will be decided upon later this week by US President Donald Trump and his Chinese counterpart, Xi Jinping.
- If Trump and Xi have a fruitful trade summit this week, gold may find itself somewhat in the dark. If the Fed adopts a dovish stance with this week’s anticipated rate decrease, however, this might be countered.
- Investors are watching for any forward-looking remarks from Fed Chair Jerome Powell, as it is generally anticipated that the Fed will lower interest rates at the conclusion of its policy meeting on Wednesday.
Technical Triggers
- As gold continues its downslide, breaking $4000, the next support is $3960 (~Rs 120,000) and $3850 (~Rs 117,000)
- Silver has also broken support of $47(~Rs 145,000), the next target is $46 (~Rs 140,000) and 45 (~Rs 136,500).
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