Fundamental News and Triggers

• Precious metals prices are trading near resistance levels ahead of today’s critical NFP report. Hawkish indications from several key Fed officials, together with the minutes of the June FOMC policy meeting, indicate that policymakers were still unsure about lowering interest rates.
• Today’s NFP report is projected to indicate that the US economy gained 190,000 jobs in June, compared to 272,000 the prior month. The critical data will play an important role in shaping market expectations about the Fed’s future policy actions, which will boost USD demand and offer a new directional push to Gold and Silver.
• The US dollar is under pressure due to expectations that the Federal Reserve’s rate-cutting cycle will begin in September.

 

Technical Triggers

• Gold is trading in a range with a descending triangle with lower highs and higher lows. The triangle is becoming narrower and narrower every week, so a breakout is imminent. A sustainable close above $2380 (Rs 72800) and a sustainable close below $2300 (Rs 71000) will confirm a downside breakout.
• Silver is trading in a range with a descending trend channel with lower highs and lower lows. A sustainable close above $31(Rs 92500) will give a breakout towards the upside, while a sustainable close below $29 (Rs 89000) will give a breakout towards the downside.

 

Support and Resistance

 

 

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