Fundamental Q News and Triggers

• Precious metals saw profit-booking after the Dollar Index touched a six-month high, while US
Treasury yields reached multi-year highs after the Federal Reserve indicated that interest rates in
the US would remain higher for longer.

• While the Fed held rates constant on Wednesday, Powell stated that the Fed will cut rates by a
smaller percentage than predicted in 2024, despite recent increases in US inflation. The 10-year
benchmark reached a 15-year high, while 2-year rates reached their highest levels since early 2001.
This is a negative aspect of precious metals.

• The Fed still expects the U.S. economy to fall into a recession this year, due to relative resilience in
consumer spending and labour activity. This factor is positive for precious metals.

 

Technical Triggers

• Gold prices have been making lower highs and lower lows, since touching record-high prices in May.
Near-term resistance is $1970 and support is $1920. Prices need to break this range to set a oneway 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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