Fundamental News and Triggers

• The gold price stays close to a nearly two-month high as Fed rate reduction expectations rise. Markets are now pricing in a larger possibility for the beginning of the rate-cutting cycle in September.
• The present market pricing shows a larger likelihood that the Fed will cut interest rates in September, with the prospect of another interest rate cut before the end of the year.
• Furthermore, Federal Reserve Chair Jerome Powell stated on Monday that recent inflation data has increased confidence that inflation is sustainably returning to the target. Powell also stated that the Fed does not intend to wait until inflation reaches 2% before acting, implying that rate cuts are not far off and lending some support to the gold price.

 

Technical Triggers

• As suggested last week, Gold and Silver are on the verge of a breakout after one-month range trading, we have noticed a bullish breakout on the charts.
• Gold closed last week above important resistance of $2400 (Rs 73000), this has opened doors for the previous high of $2450 (Rs 74500) and a new high of $2500 (Rs 76000) in the coming days if prices sustain above the resistance level.
• Similarly, Silver has given a bullish breakout on charts above $31 (Rs 92800), if prices sustain above this level, the next target is $32 (Rs 94500) and $32.5 (Rs 96000).

 

Support and Resistance

 

 

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