Precious Metals forming a base for next-up leg

Fundamental News and Triggers

  • Precious metals are trying to form a base and rebound as US data showed a slowing economy and a “timid” reacceleration in inflation.
  • This week is critical for gold traders, as they will closely monitor key economic data.
  • Traders are expected to be focused on how the NFP data compares to last week’s inflation numbers. If the US jobs report meets or falls short of forecasts, it may confirm the Federal Reserve’s view that a pause in the interest rate-cutting cycle is on the way.
  • The price of gold is heavily reliant on a dovish monetary policy. If the Fed cuts rates less aggressively, this might negatively impact gold prices and the economy.

 

Technical Triggers

  • Gold is trying to form a base around $2600-20 (~Rs 76000-500) support zone for up leg towards $2680 (~Rs 78000) and $2720 (~Rs 79000).
  • Silver has formed a base around $29 (~Rs 87000), buying could be initiated on every dips for the target of $31(~Rs 92500) and $32 (~Rs 95000).

 

Support and Resistance

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and 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 opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors 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 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 in no way guaranteed. No guarantee 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 purposes and are not to be construed as investment advice.

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