Precious metals well supported on risk-on mood

Fundamental News and Triggers

Market sentiment deteriorates amid growing concerns about First Republic Bank (FRB), whose shares fell another 20% on Wednesday after falling by 50% the day before. Due to this, the FRB is probably going to encounter restrictions on the amount of money it can borrow from the Fed, which will have an impact on other markets as well as risk appetite and the prices of gold and silver.

Additionally, the cautious atmosphere surrounding the US debt ceiling expiration puts support on the price of gold because most policymakers are divided over the solutions put forth by US Vice President Joe Biden. Nevertheless, the “Limit, Save, Grow Act,” a bill that calls for raising the debt ceiling and reducing government spending, is currently up for vote in the US House of Representatives. Even though the bill’s passage only brings us one step closer to our goal, any setback can heighten the risk-taking spirit and put additional upward pressure on the price of gold and silver.

Technical Triggers

Gold prices are consolidating in the range of $1970 (Rs 59600) to $2050 (Rs 61300) from last few days, prices need to break this range to move higher.

Silver has seen 30% rally from $20 to $26, prices are retracing now, with next 23.6% Fibonacci support at $24.6(Rs 73800)

Support and Resistance 



Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, 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 above-mentioned opinions are based on the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and 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 an 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 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 purpose and are not to be construed as investment advices.


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