Fundamental Q News and Triggers

• The US CPI increased from the previous month’s 0.2% to 0.6% in August on rising oil prices.
Compared to the market expectation of 3.6%, annualized CPI increased by 3.7% and these sticky
inflation worries are dragging down the price of gold.

• Despite the FED being on track to hold rates steady at their upcoming rate call next week, the rise in
US inflation is prompting markets to reassess the likelihood of further rate hikes from the FED in the
November meeting.

• On its meeting on September 19–20, the probability of the U.S. Central Bank announcing that it
would hold interest rates steady is 97%.

 

Technical Triggers

• The next support for the gold is Rs. 58300 and Rs. 58000 as the price has fallen below Rs. 58800 and
that begins to encounter the level of resistance.

• Silver has broken important up trendline support of Rs 72000, of the uptrend which started a year
back at 52000. Prices should get supported around 70000 now and then rebound.

Support and Resistance

 

 

 

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