Fundamental News and Triggers

• US President Joe Biden reportedly discussed contingency plans for striking Iran’s nuclear facilities if Tehran made significant progress toward developing a nuclear bomb before Donald Trump’s inauguration on January 20. These discussions highlight increased concern about Iran’s nuclear ambitions during the transitional period between administrations.
• Several fundamental factors, including ongoing geopolitical uncertainties, expectations of continued central bank purchases, and the metal’s traditional role as a safe-haven asset, are supporting precious metal prices.
• While potential headwinds such as dollar strength and the pace of interest rate hikes may pose challenges, overall market sentiment indicates that gold prices will remain supported.

 

Technical Triggers

• Gold has given a breakout of its $50 range by breaking $2650 (~Rs 77000), next level to look for is $2720 (Rs 78500)
• Silver has very strong support at $29 (~Rs 87000), buying could be initiated on dips for the target of $31(~Rs 91500).

 

Support and Resistance

 

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