Precious Metals rangebound amid hawkish FED fears

Fundamental Q News and Triggers

The Precious metals are trading rangebound as traders avoid large bets ahead of the Federal Reserve’s
interest rate decision later in the day, with a recent uptick in inflation raising concerns about a
possible hawkish outcome.

However, a recent increase in inflation, primarily due to rising oil prices, may prompt the central
bank to adopt a more hawkish stance. The Fed has not ruled out at least one more rate hike this
year, which it could announce later in the day.

Even if the Fed announces no further raises, interest rates are projected to remain above 20-year
highs until at least mid-2024, offering a bleak picture for gold and other non-yielding assets.


Technical Triggers

Gold prices have been making lower highs and lower lows, since touching record-high prices in May. Near term resistance is $1960 and support is $1920. Prices need to break this range to set a one-
way direction.

Silver prices have been continuously taking support at the uptrend line with strong support at
$22.4. Until prices stay above this support, the uptrend will continue.

Support and Resistance




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