Precious Metals recoups losses after Retail sales data

Fundamental News and Triggers

  • Gold prices surged after US retail sales in January fell short of expectations. Retail Sales fell sharply by 0.8%, compared to projections of 0.1%.
  • Gold prices have remained in consolidation mode, as higher-than-expected US inflation has hampered expectations for a rate decrease in the first half of 2024. Aside from the sticky inflation reading, rising rates have received additional support following the previous FOMC meeting.
  • It’s only a matter of time until the Federal Reserve abandons its inflation aim and lowers interest rates to boost the economy. This adjustment in monetary policy will result in fresh investor demand for gold, driving prices much higher.

Technical Triggers

  • Gold prices have rebounded from important support of $2000 (Rs 61400) and again heading higher towards the higher end of the range of $2050 (Rs 63000).
  • Silver prices have rebounded sharply from $22 (Rs 69000) towards $23 (Rs 71000). It seems a short-term low is in place and prices are heading towards $24 (Rs 73000).

Support and Resistance

 

 

 

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