Fundamental News and Triggers

• The US macro data dump yesterday revealed a halted rate of inflation and a relatively robust US economy. This raises the possibility that the Fed may be wary of further rate reduction and cause a slight increase in the rates on US Treasury bonds, which boosts demand for the US dollar and is seen to be hurting Gold and Silver.
• According to data from the US Commerce Department, the largest economy in the world grew at a robust 2.8% annual rate in the third quarter thanks to a 3.5% increase in consumer expenditure. And the core PCE Price Index increased by 0.3% monthly, moving up from 2.7% in September to 2.8% last month.
• In addition to FOMC minutes that indicate the Committee may halt its reduction of the policy rate if inflation stays high, there are concerns that US President-elect Donald Trump’s plans may increase inflation.

 

Technical Triggers

• Gold is showing very volatile moves with support at $2600. Prices are expected to trade in the range of $2600 (~Rs 75000) and $2700(~Rs 77000) for the next few days.
• As suggested, Silver has strong support at $30 (~Rs 87500), prices have rebounded and are expected to consolidate between Rs 88000 and Rs 92000 for the next few days.

 

Support and Resistance

 

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