Fundamental News and Triggers

• The stronger US consumer inflation data caused investors to drop expectations on the Federal Reserve’s early rate cuts, underpinning the US Dollar and curbing the upside for the gold price.
• Fed funds futures have priced out a rate drop in March and expect a roughly 80 percent chance of easing at the June meeting, as well as three 25 basis point rate decreases by the end of the year, compared to five two weeks ago.
• Meanwhile, negotiations between Israel and Hamas in Gaza have restarted as the former confronts international pressure to end its bombing of Rafah, a city in the southern Gaza Strip.

Technical Triggers

• Gold prices are trading on the lower edge of the range around $2000 (Rs 61400), if prices break this range, immediate support would be $1980 (Rs 61000).
• Silver too is trading near important support of $22 (Rs 69300), if prices break this support, the next level to look for is $21.4 (Rs 67500).
• Gold and Silver prices are trading in a very oversold zone, so we can expect a rebound and reversal too at current levels.

Support and Resistance

 

 

 

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