Fundamental News and Triggers
Stronger dollar acting as a thorn in the side of bullion
- Given the dollar’s resilience at three-month highs near the 100 mark and the decreased likelihood of another U.S. interest rate cut in December, gold and silver continue to stabilize in a range. Trade deal between the United States and China has reduced demand for bullion
- Fed officials pressed opposing economic views on Monday, a debate that is expected to heat up before the December policy meeting and in the absence of important data, especially from the Bureau of Labor Statistics, because of the federal government shutdown.
- For indications of rate reduction, investors are now anxiously awaiting the release of this week’s ISM PMIs and Wednesday’s ADP U.S. employment statistics. Gold might gather traction and resume its upward trajectory if we witness another depressing ADP data.
Technical Triggers
- Gold prices are expected to consolidate in the range of $3900 (~Rs 117,500) to $4060 (~ Rs 122,500) for the next few days, so buy on dips and sell on rallies.
- Silver prices are expected to consolidate in the range of 45.5(~Rs 140,000) and $49 (~Rs 150,000) for the next few days, so buy on dips and sell on rallies.
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