Fundamental News and Triggers

• On the back of unexpectedly positive US S&P Global PMIs, we are currently seeing profit taking in the gold market. The US Dollar gained strength as business activity in the US improved. At its meeting in May, the US Federal Reserve is anticipated to raise rates by 25 basis points.

• Three of the main causes of long-term unease around the world are high interest rates, the recent banking crisis, and Pentagon document leaks that reveal American concerns about Ukraine’s planned spring offensive.

• Investors frequently turn to gold as a hedge against potential market volatility when occurrences like these cast doubt on the future of the global economy. A perfect storm could develop between the risky geopolitical environment and gold’s bullish technical pattern, triggering gold’s upward momentum.

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% fibonnici support at $24.6(Rs 73800)

Support and Resistance 

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