Fundamental News and Triggers
• Gold and Silver continue to pair gains as FED hinted pause in rate hikes due to banking crisis. The Federal Reserve’s emergency lending to banks reached record levels last week, increasing the size of the Fed’s overall balance sheet to $8.8 trillion from $8.7 trillion the previous week. Expanding FED balance sheet is positive for Gold and Silver.
• The Federal Reserve raised interest rates by 25 basis points and maintained its preference for extremely limited further rate hikes. Federal Reserve Powell also said “no” to rate cuts in 2023, citing the ongoing
battle against stubborn inflation, which will continue until US inflation returns to desired levels.
Technical Triggers
• Gold prices has seen very volatile moves, with prices rising 10% in 10 days, then falling more than 3% from
highs. Now after FED rate hike, prices are expected to continue its bull run after this correction.
• Silver has underperformed more than Gold, so its bull run is expected to continue. The next target for Silver is Rs 71000 in short-term.
Support and Resistance
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