gold and silver – kya lagta hai
short-term view (up to 1 week) – Weakness– Gold has broken support at downtrend channel again, while Silver is continuously trading below its downtrend line from last 5 months
Long-term view (3-4months) – positive – – – Any dips towards 50000 and 52000 should be used as buying opportunities for the target of 55000 and 60000 for Gold and Silver respectively by year end.
spot gold daily price chart
spot silver daily price chart
Important news and triggers
Precious metals plummet as U.S. CPI surprises to the upside
- International news – U.S. inflation turned out stronger than expected yet again in August, paving the way for another big hike in interest rates from the Federal Reserve when its policy-makers meet next week.
- Demand and Supply – – Probability of 100 bps rate hike by FED has increased from 0% to 35% after CPI data release.
- Economic data – – – The consumer price index was up 8.3% from a year earlier, driving the annual core inflation rate up to 6.3% from 5.9% in July. That’s the highest it’s been since the 40-year high that it hit in March.
- Indian Demand – India’s gold imports in August halved from a year earlier to 61 tonnes as volatile local prices and a weak rupee prompted consumers to postpone purchases.