Precious Metals vulnerable ahead of PCE report

Fundamental News and Triggers

  • The gold price regains some positive momentum, but silver prices continue to decrease, albeit with little follow-through buying. Sliding US bond yields undercut the USD and provide some support to precious metals.
  • Investors believe the Fed will maintain higher interest rates for longer due to persistent inflation and a strong US economy. This may prevent traders from placing excessive bullish wagers on the non-yielding gold price ahead of the release of the US PCE Index on Thursday.

Technical Triggers

  • Gold prices have continued to trade in the range of $2000 (Rs 61200) to $2060 (Rs 62600) in the last month. Prices need a solid trigger to give either side a breakout.
  • Silver prices have seen a sharp sell-off in domestic markets in the wake of falling discounts in domestic markets. As prices have been trading rangebound for the last two months. Strong support lies at $22.50 (Rs 69000).

Support and Resistance

 

 

 

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