Fundamental News and Triggers

• Precious metal prices have recovered from last week’s lows, as weak US inflation numbers reiterated market views that the Federal Reserve will lower interest rates in September, driving flows into gold and silver.
• The better inflation outlook dropped the benchmark 10-year note rates to a nearly two-week low yesterday, undermining the US dollar and benefiting gold and silver.
• Aside from that, geopolitical uncertainties associated with Middle Eastern wars provide further support for precious metals. The Golan Heights strike on Saturday has stoked fears of an all-out conflict between Israeli forces and Hezbollah in Lebanon, which further supports the demand for the safe-haven precious metal.

Technical Triggers

• Last week’s low of $2350 (~Rs 67400) will act as a short-term base for gold prices, which is expected to hold strong support. At the same time, $2450 (~Rs 68500) and $2475 (~ Rs 69500) are expected to be the next resistance.
• Silver rally which started from Rs 68000 to Rs 96000 in 2024, has almost retraced 50% to around Rs 82000. Silver prices seem to have formed a base around $27.5 (~Rs 80300) in the short term and a rebound is expected from here with the next resistance of Rs 85500.

 

Support and Resistance

 

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