Precious Metals continue diving amid strong US GDP

Fundamental News and Triggers

  • Gold and Silver prices have fallen sharply to around $2375 (~ Rs 68000) and $28 (~Rs 81500). The downfall may be due to technical selling and risk-off sentiment.
  • Markets have fully priced in a September rate cut and expect the US central bank to lower borrowing costs twice more by the end of this year.
  • The release of mostly disappointing global flash PMIs on Wednesday added to worries about an economic slowdown and should support the safe-haven met.
  • Aside from this, the political uncertainty in the US could support bullion ahead of the two most important US macro-data points, the PCE Price Index on Friday and the Advance Q2 GDP report on Thursday.

Technical Triggers

  • The maximum downside expected in Gold is $2300 (~ Rs 65500) and for Silver to about $26.5 (Rs 78000)

 

Support and Resistance

 

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