Precious Metals well supported on US default woes

Fundamental News and Triggers

Gold price maintains its lead around $2000, as it reaps the benefits of the current wave of risk aversion, which is primarily driven by recent banking concerns and problems related to the expiration of the US debt ceiling as well as the FED’s policy change.

The market’s mood was affected by new worries about banking collapses and a US default, which allowed the gold price to hold firmer despite a risk-off attitude.

Aside from the banking crisis, worries about the US debt ceiling expiration, which is a concern because the current cap expires in June, also reduce risk appetite.

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 

 

 

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