Fundamental News and Triggers

• The gold price is seen consolidating toward the top end of a short-term trading range. The uncertainty around Fed rate cuts prevents traders from making new directional bets.
• On the geopolitical front, tensions in the Middle East continue, with reports this morning that Israeli Prime Minister Benjamin Netanyahu has disbanded his war cabinet. As additional details emerge, Israel’s future measures may be critical.
• As market players consider the implications of a larger conflict in the Middle East, escalation remains the most significant risk. Any uptick in hostilities, particularly with Hezbollah on the Lebanese border, may see the safe haven attraction resurface and gold move again near the $2400 mark.

 

Technical Triggers

• Gold has formed a Head and Shoulder pattern on Daily charts in the last two months with a record high touched above $2450. Neckline support of this H&S formation is $2300. If prices break this level and sustain below it, the next target could be $2150.
• Silver has formed Double Top formation around $32.5 on daily charts time frame. As prices have closed below the important support of $29.5, the Double top formation target is $28.50 and $26.50.

 

Support and Resistance

 

 

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