Fundamental News and Triggers

• Gold continues to rise as Treasury yields fell due to better-than-expected US core inflation. As anticipated, the Consumer Price Index increased 2.9% YoY in December, surpassing the 2.7% increase in the prior month. The core CPI for the same period grew 3.2% year over year, which was less than the 3.3% growth recorded in November.
• In contrast to last week’s projection of a 25 basis point rate cut, traders now predict the Fed may lower rates by 40 basis points by the end of 2025. Investors are anticipating the first rate cut at the June 18 meeting, according to the CME FedWatch Tool.
• The future outlook for gold looks very optimistic going forward, bolstered by several possible catalysts. The projected economic policies of the future Trump administration, such as more tax cuts and higher tariffs, could fuel inflationary pressure.

 

Technical Triggers

• Gold is on the verge of breaking its symmetrical triangle pattern at $2725 (~Rs 78900). If prices sustain above these levels, we could see gains towards $2760 (~Rs 79800).
• Silver prices have given a bullish breakout from its symmetrical triangle pattern by trading above $30.5 (~Rs 92500). If prices sustain above this level, we could see more gains up to $31.3 (~Rs 94500) and $32.3 (~Rs 97500).

 

Support and Resistance

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.