Fundamental News and Triggers

• Amid concerns about tariffs and a desire to protect against deficits, debt, and de-dollarization, gold closed yesterday at a record high of about Rs 80300 on domestic markets.
• With Chinese markets closed for the Lunar New Year holidays this week, investors are now concentrating on the Fed’s first policy meeting of the year. After dropping rates by 100 basis points from September to December, the Fed is anticipated to maintain them at their current level as it wraps its two-day meeting today.
• The policy rate for the Federal Reserve’s interest rate decision on Wednesday is expected to remain unchanged, according to the CME FedWatch tool. The likelihood of a 25-basis point rate cut in the May rate decision is 40% going forward, while the likelihood of no change is 51.5%.
• However, Trump’s statement this week that he wants the Fed to decrease borrowing prices might make the central bank’s work more difficult.

 

Technical Triggers

• Gold prices have been trading in a range of $2725 to $2780 from the last few days, while it has risen from Rs 78400 to a record high of Rs 80400 in the last 10 days due to rupee depreciation. Further upside momentum is expected to continue towards $2800 (Rs 81000) this week.
• Silver Future prices are trading in a range of $29.5 (Rs 89000) to $31(Rs 93000) from the last month. Prices need to sustain above $31 to start their bullish momentum towards $32 (~Rs 96000).

 

Support and Resistance

 

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