Precious Metals await Inflation

Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Rebound – While retaking the $1,650 level is a positive signal for gold, the yellow metal is still trading below the key $1,700 level, making it susceptible to more declines in the near term. Long-term View (3-4months) – Positive – Any dips towards 49000 and 52000 should be used as buying opportunities for the target of 52000 and 60000 for Gold and Silver respectively in long-term.
SPOT Prices
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and Triggers
  • International News –  Precious Metals remains sidelined around the weekly tops, taking rounds to $1,660, as traders await the key data from the Fed’s preferred inflation gauge. Elsewhere, hawkish central bankers and fears of recession underpin the Treasury yields but the US dollar struggles to regain upside momentum amid the quarter-end positioning.
  • Demand – Global recession fears will likely remain the theme for the rest of the year and that should limit how far global bond yields end up going. Gold’s two-year low might be the bottom, if not it should be very close to it. Traders are now waiting to see if the decline in the dollar will be sustained, or just another blip before more upward movement. The factors that boosted the greenback- elevated inflation and a hawkish Federal Reserve- are still in play.
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