Precious Metals continue to consolidate near highs

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.

Technical Triggers

• 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

 

 

 

Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, 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 above-mentioned opinions are based on the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and 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 an 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 no way guaranteed. No guarantee of any kind 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 purpose and are not to be construed as investment advices.

 

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