The Wednesday morning was filled with a slew of information. Some have already been released, and some are yet to be released.
The Manufacturing and Non-Manufacturing PMI numbers signal a slowing economy in China. It has created fluctuations in the market for gold rates.
The US debt ceiling cues have created several fluctuations in the commodity Market. For the past month, the news has been creating a lot of trends and patterns and has technical analysts analysing patterns.
“Gold and Silver rates in the markets are displaying volatile levels, likely due to the US debt ceiling votes taking place this week,” said Ankit Kapoor, Head of Research at Commodity Samchar, India.
The yellow metal is yet to see a safe haven demand in the event the US default occurs, which would lead to a recession. As per sources, several Republican and Democrat lawmakers have signalled discontent concerning the bill and plan to vote against passing it in Congress.
The yellow metal has seen a fall from record-high hits earlier this month and was set to clock a monthly loss of over 1%. This issue was directly an effect of expectations that the Federal Reserve might raise interest rates further in June.
Technical View:
Since 30 May 2023, Gold prices bottomed out and recovered virtually 1%. Yesterday, after hitting a day’s low 59225 settled at 59946, up 0.89%.
Since morning today, prices traded in the green zone at 60105, up 0.27%.
On the above chart, prices are trading in a falling channel pattern, where it has formed a lower high and lower low since 22 May 2023. At present prices trading on the verge of immediate resistance 60250 and a break above will lead prices towards the next resistance 60550-60800 soon, which coincided with a 61.8% Fibonacci Retracement.
Further, prices would need to break above 60880 for further gain. And prices will appear to test the next resistance 61200-61580.
Alternatively, failure of the break will create a probability for reversal again. And prices may retreat towards 59950-59300 again.
Overall trend will expect to remain volatile and the recent gains might be limited.
Commodity Samachar
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