Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Rangebound– Gold support is 50800 and resistance at 51500 while silver support is 56000 and resistance is 58000.
Long-term View (3-4months) – Positive – Any dips towards 50000 and 55000 should be used as buying opportunities for the target of 55000 and 65000 for Gold and Silver respectively by year end.
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and Triggers
Precious Metals outshines amid panic
- International News – Precious Metals bulls are rejoicing the reducing bets for a 75 bps Fed rate hike in September amid a combination of factors affecting the market’s perception of risk sentiment in recent times. Firstly, risk-off flows continue to dominate on rising concerns over a potential global recession following the US Q2 GDP contraction. Another catalyst hurting investors’ confidence is the brewing US-China tension over Taiwan.
- Economic Data – The July FOMC meeting gave way to a sharp pullback in Treasury yields, with the 2-year yield dropping to its lowest level in nearly a month (2.84%) as comments made by Chair Powell were taken as a signal that peak Fed hawkishness has passed.
- Domestic News – The India International Bullion Exchange which has enrolled over 60 qualified jewellers to trade on the exchange and set up infrastructure to store physical gold and silver was launched last weekend.