Fundamental News and Triggers
• Dovish Federal Reserve expectations, combined with renewed concerns about the banking sector crisis, has rekindle the bullish momentum, causing the gold price to resume its upward trend toward the yearly high above Rs 60000/ 10 gm.
• Strong US S&P Global Manufacturing and Services PMI data fueled Federal Reserve hawks as well as the US Dollar. In the absence of a major economic event in the United States, gold traders will pay close attention to developments surrounding the global banking crisis. Also, following the Fed’s policy decision and the end of the ‘blackout period,’ speeches from Federal Reserve policymakers will resurface.
• There is a bull flag formation in Gold charts and Fibonacci retracement of March runup is $1963, which is holding as support for prices. If prices fall below this support, we could see sell-off.
• Silver has underperformed Gold, so its bull run is expected to continue. The next target for Silver is Rs 71000 and Rs 73000 in short-term.
Support and Resistance
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