Precious Metals continues the upward trend on safe-haven bid

Fundamental News and Triggers

  • Gold prices continue to rise, pushed by geopolitical worries and US economic statistics. The disparity between a strong US labour market and low consumer confidence may have an impact on FED policymakers’ rate decrease expectations.
  • Geopolitical threats and China’s economic troubles may provide support for gold as a safe-haven asset.
  • Investors are focused on the upcoming Fed statement and Jerome Powell’s press conference for future policy insights.
  • Bullion Industry players are expecting an import duty cut on precious metals from 15% to 4% in this interim budget.

Technical Triggers

  • Gold prices have recovered from 38% ($2010) Fibonacci retracement, prices need to sustain above 23.6% ($2055) Fibonacci retracement to head higher.
  • Silver is trading at the resistance level of $23. If prices sustain above this level, the next resistance would be $24.

Support and Resistance

 

 

 

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