Precious Metals retreat on profit booking

Fundamental News and Triggers

  • In the face of overbought conditions on the daily chart, a rise in US Treasury bond yields and a stronger US dollar caused some profit-taking around the precious metals pack.
  • Former President Donald Trump and Vice President Kamala Harris are in neck-to-neck competition in opinion polls, and the increased likelihood of a Trump victory is seen as a threat to a stable geopolitical outlook.
  • Bullion prices would be supported on dips as war wages on in the Middle East. Despite efforts at a ceasefire, fighting between the Israeli army, Hamas, and Hezbollah in Gaza and Lebanon, and the Israeli army continues to fight.

 

Technical Triggers

  • Gold continues to rise steadily across all time frames (short, medium, and long), and it is currently headed towards its next goal, which is $2800 (~Rs 80000), after breaking over the $2750 barrier.
  • As suggested earlier, silver prices could see some profit booking at higher levels, exactly what happened yesterday. Prices need to sustain above $34.5(~Rs 98500) to continue the uptrend or if it falls below $33.60 (~Rs 96500), we could see more profit booking to $33(~Rs 93000).

 

Support and Resistance

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.

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