Fundamental News and Triggers

• Precious metal prices strengthened on September Fed rate cuts bets. The US macro data indicates lowering inflation and a weakening economy, leading to anticipation that the Fed would cut interest rates twice this year.
• Data on US retail sales and industrial production point to an economic downturn, raising anticipation for rate cuts.
• The Fed Watch Tool indicates a 67% likelihood of a September rate cut, with December 2024 futures predicting 36% chances of rate cut. Geopolitical issues and political uncertainties in Europe can boost bullion prices.

 

Technical Triggers

• Gold has formed a Head and Shoulder pattern on Daily charts in the last two months with a record high touched above $2450. Neckline support of this H&S formation is $2300. If prices break this level and sustain below it, the next target could be $2150.
• Silver has formed Double Top formation around $32.5 on daily charts time frame. As prices have closed below the important support of $29.5, the Double top formation target is $28.50 and $26.50.

 

Support and Resistance

 

 

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