Fundamental News and Triggers

• The gold price has become erratic as the US Bureau of Labor Statistics announced higher-than-expected Consumer Price Index data for December. Annual headline inflation rose to 3.4%, exceeding predictions of 3.2% and the previous reading of 3.1%.
• The appeal of bullions may decrease in the short-term, slightly as investors’ confidence in the Fed lowering interest rates in March has waned little following rising inflation statistics. Investors have ignored the fact that Fed policymakers continue to tilt toward maintaining a restrictive stance for a longer period, dismissing the possibility of early rate decreases.

 

Technical Triggers

• Gold prices have broken the up trendline support of $2045 (Rs 62600), and we can see profit-booking up to $2010 (Rs 61300)
• Silver prices are trading at its important support near $23 (Rs 71800), we can see a rebound from these levels to $24 (Rs 75000)

 

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 of any kind 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.