Fundamental Q News and Triggers

• Gold and Silver prices are trading stable, capped by the news that the Federal Reserve pledged to raise interest rates until inflation returns to its annual target of 2%, a commitment that market participants consider negative for the precious metals.

• Both yields and the dollar rose as the Fed forecasted another quarter-point rate hike by year’s end, despite holding rates steady for September at a policy meeting on Wednesday.

• Gold will see one more wave of decline if US growth exceptionalism keeps rates up. The top in Treasury yields is approaching, but gold may struggle to stabilise until recession fears become the default scenario for the US.

 

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 one-way direction.

• Silver prices have been continuously taking support at the uptrend line at $22.4. Until prices stay
above this support, the uptrend is likely to continue.

Support and Resistance

 

 

 

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