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Below the Quote on Gold by Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution

“Technically,  gold has been slightly weak last few days after testing highs of above 2600 as the DXY recovered from around 101 to 102.8 levels. So far, the yellow metal bulls have easily defended the earlier swing lows of around 2602 and the picture remains strong for the next few sessions barring some international shocks. Like we mentioned earlier, the 2650 levels are important for the short term and for 2625 odd levels to become supports. 2620 levels are where the 50 DMA is placed so that’s the first critical support .As markets make up their mind on what happens to US inflation and GDP next – and therefore Fed rates , the bears have managed to keep gold from going vertically higher towards 2700 plus levels. Recent macro data in the US has poured cold water on the expectations of an aggressive rate cut by the Fed. According to a Reuters report, markets now see an 80 per cent chance of a 25-basis-point Fed rate cut in November. This is negative for gold. On the other hand, the Israel conflict remains Gold positive. Given that Gold appears overbought on charts, and there may be a slight divergence appearing on indicators, we might be in the short term near the upsides. The US CPI report due this week is an important trigger for Gold. If Gold were to break supports we have a very strong support placed at 2500 levels. The US CPI data will be a key factor influencing the Fed's monetary policy stance. Experts remain positive about gold's prospects due to tensions in the Middle East and the Fed's monetary easing cycle.”

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