Fundamental News and Triggers

• Ahead of Fed Chair Powell’s speech and US employment figures, the price of gold remains stable at $2650. Risk aversion over China’s problems and the Fed’s unclear future rate cuts are what give the US dollar its strength. According to the CME Group’s FedWatch Tool, markets are currently pricing at a 73% chance of a December Fed rate cut.
• Additionally, sentiment remains positive in India as RBI increased its gold holdings by 27 tonnes in October, bringing its total holdings to 77 tonnes so far this year. India’s net buying activity for the year to date has increased fivefold compared to 2023. RBI is the world’s largest buyer of gold in 2024, following that are the countries Turkey and Poland.
• This Friday marks the release of the US employment data for November, and as usual, the unemployment rate and NFP may be the main factors influencing gold price volatility. It is anticipated that the unemployment rate will slightly increase from 4.1% to 4.2% and that the Non-Farm-Payrolls total will reach 202k, much surpassing the dismal record of 12k from the previous month.

 

Technical Triggers

• Gold prices are expected to be rangebound and consolidate between $2600 (~Rs 75000) and $2200(~Rs 77600) for the next few days with positive bias. There may well be another shoe to drop after all before the balance of risks shifts back towards the upside in Gold.
• Silver prices are expected to be rangebound and consolidate between $30(~Rs 90000) and Rs $32(~Rs 94000) for the next few days.

 

Support and Resistance

 

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