Precious Metals continue to rally on follow-through buying

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  1. Gold and Silver – Kya Lagta Hai

    Short-term View (up to 1 week) -Rangebound–– Gold is again trading in same range 50200 to 51200 and silver range is 59000 to 62500

    Long-term View (3-4months) -Positive – Any dips towards 50000 and 60000 should be used as buying opportunities for the target of 55000 and 70000 for Gold and Silver respectively

    SPOT PRICES
    SPOT Gold Daily Price Chart
    SPOT Silver Daily Price Chart

     

    Important News and Triggers 

    Precious Metals continue to rally on follow through buying

    • International News – – Precious Metals are getting support from record-high retail inflation in the US last week, resulting in a historic rate hike of 75 bps by the Federal Reserve.
    • Demand and Supply – – -Most analysts believe that a recession is coming sooner rather than later, gold’s long-term outlook doesn’t look to bad. Looking at the Fed
      funds futures curve, markets very much remain of the opinion that after some aggressive near-term hiking from the Fed coupled with a recession over the next 12
      or so months, US inflation should come eventually come under control, giving the Fed the space to then cut interest rates in the longer-term.
    • Economic Data –  –  The Fed had previously suggested it was likely to boost rates by half a percentage point at each of its three meetings this year, but recent signals
      that inflation is accelerating spurred policymakers to move more aggressively to slow economic growth in a bid to tame prices
    • Domestic News– – Gold imports jumped to over $6 bn in May from around $1.7bn a month ago as consumers splurged on Akshay Tritiya after the Covid imposed
      lockdown in 2021 and 2020 threw a wet blanket over the previous occasions

     

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