Fundamental News and Triggers

• Gold and Silver prices have retreated from highs as the FED stance has turned hawkish. While inflation had decreased during the previous year, ” FED members observed that in recent months there had been a lack of further progress toward the Committee’s 2% objective,” according to the FOMC policy meeting minutes and they said, they will hold high interest rates for longer time.
• In the meanwhile, gold prices are somewhat supported by geopolitical tensions. There may be a new trade war between the two biggest economies given the recent escalation in hostilities between the US and China—the implementation of substantial tariffs on Chinese electric vehicles and China’s following anti-dumping investigations.
• Furthermore, in light of the recent passing of Iranian President Ebrahim Raisi, the market fears that the crisis in the Middle East will worsen, which is supporting safe-haven buying for Gold.

Technical Triggers

• As suggested, Gold has double topped and is expected to retrace to $2380 (Rs 72800), the same thing happened. Now this retracement is expected to continue towards $2345-50 (Rs 72000)
• As suggested in yesterday’s report, if silver prices retrace below $31 (Rs 92000), it means it has topped out and we can see a correction towards Rs 90000 and Rs 87500. Prices ran up very fast and were trading in the overbought territory this week, so this retracement was due for the healthy bull market.

 

Support and Resistance

 

 

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