Precious Metals catching up steam for another bull run

Fundamental News and Triggers

  • Despite the US dollar’s consolidation, the price of gold rose. In the US, retail sales might impact expectations for the Fed’s monetary policy and offer more details on the economic outlook.
  • According to a Reuters survey, 70 out of 108 economists predicted that the Fed will decrease the Fed funds rate by 25 basis points (bps) in September. Of those same economists, 65 said that rates would be lowered by 50 bps in 2024.
  • While tanks and troops pushed a highway into Rafah, forcing Palestinian inhabitants to evacuate, Israeli soldiers advanced deep into the ruins of Gaza’s northern boundary to reclaim a region from Hamas militants.

 

Technical Triggers

  • After a month-long consolidation phase, gold and silver prices are again catching up steam to touch previous highs. Gold has resistance around the $2380-85 (~Rs 72700) zone, once that is cleared, the next target is $2400 (Rs 73200) and the previous high of $2448 (~Rs 74000).
  • While for Silver resistance zone is $29 (~Rs 85700), if prices sustain above this level, we can expect prices to touch the previous high of $30 (~Rs 88000) again.

 

Support and Resistance

 

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.

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