Fundamental News and Triggers
Precious metals witness profit booking ahead of Employment data
- Gold and silver prices fell as investors awaited the US nonfarm payrolls report for October and November, which would provide additional information on the Federal Reserve’s policy stance. If labour market data confirms the idea that employment remains a weak point, precious metals may benefit since it enhances the case for quicker rate cuts.
- Markets are currently putting in a 75.6% chance that the Fed will hold interest rates unchanged at its January meeting, with some expecting two additional rate cuts next year.
- US officials stated on Monday that an agreement with Ukrainian President Volodymyr Zelenskyy to stop the war with Russia was nearly complete, but territorial problems remain unresolved, and a robust security assurance from the US and European countries remains a sticking point.”
- India’s regulators now enable pension funds to invest in gold and silver ETFs. They will be authorised to add gold and silver ETFs in private sector pension programs worth up to 5% of the fund’s AUM. This could further increase the already increasing investment demand in India.
Technical Triggers
- Gold is expected to trade in the range of $4290 (~Rs 132,000) to $4400(~Rs 136,000) this week. Buy on dips around support.
- For Silver $65 (~Rs 200,000) will be a difficult nut to crack. Prices are expected to touch support of Rs $60.50 (~Rs 188,000) before rising higher to resistance.
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