GOLD Analysis
Afternoon: Gold Prices Surge Amid Fed Speculation and Geopolitical Tensions
Highlights:
- Bullion jumps 4.1% this month; Fed's anticipated pivot to lower interest rates boosts gold; US 30-year yields rise on Trump victory bets
- Powell's comments cause brief price dip; gold trades near highest-ever price amid geopolitical tensions; strong Chinese consumer demand supports prices
- Resistance levels: $2,440.64, $2,459.17, Support levels: $2,402.47, $2,382.83, Buy at ₹73,500 with target ₹73,850-₹74,100
Market Outlook
Gold prices have experienced a notable surge, climbing 4.1% this month and breaking out from weeks of sideways trading. This movement comes as signs increase that the Federal Reserve is approaching a pivot to lower interest rates, which typically benefits non-interest bearing assets like gold. Despite the headwind of high borrowing costs, gold prices have set successive records this year, supported by central bank purchases, strong Chinese consumer demand, and haven demand amid rising geopolitical tensions.
In other markets, stocks moved toward all-time highs, driven by perceived rising odds of a Trump victory, which boosted shares in oil producers, gun makers, and private prisons. US 30-year yields rose above the two-year for the first time since January on bets that Trump would pursue an expansive fiscal policy if he wins the November election. Gold prices surged as much as 1.2% to $2,439.75 an ounce, nearing the previous record of $2,450.07, before paring some gains following Fed Chair Jerome Powell's remarks at the Economic Club of Washington DC.
Gold traded near its highest-ever price on Monday as investors assessed Powell's comments and the implications of the weekend assassination attempt on Donald Trump.
Technical Analysis
Resistance Levels: $2,440.64, $2,459.17, $2,470.37; ₹73,795, ₹74,115, ₹74,495
Support Levels: $2,402.47, $2,382.83, $2,371.63; ₹73,095, ₹72,715, ₹72,395
Trading Strategy
- Action: Buy at ₹73,500/2425
- Stop Loss: ₹73,200/2405
- Target: ₹73,850/2440 - ₹74,100/2459
Support and Resistance Levels:
