Fundamental News and Triggers

• Uncertainty surrounding the US-China Trade War has caused gold to hit yet another record high of $2885 (~Rs 84200). In an apparent attempt to prevent tensions between the two largest economies in the world from getting worse, China responded to US President Donald Trump’s initial trade war tariffs by targeting a few American companies and imposing levies on some US goods. This came after Trump imposed 10% tariffs on Chinese imports.
• Beijing levied a 10% tax on American oil and farm equipment and a 15% duty on less than $5 billion worth of US energy imports, including coal and LNG. Additionally, it will look into Google’s possible antitrust infractions.
• Hong Kong and mainland China will be subject to 10% additional US duties, according to a notification released by US Customs and Border Protection on Wednesday.

 

Technical Triggers

• Gold has given a breakout above $2850. We may see strength towards the psychological level of $2900 (~Rs 84500) and $3000 (~Rs 86000).
• Silver is on the verge of breakout at $33 (~Rs 96000). If prices sustain above this level, we are likely to see a 5% upmove for the target $35 (~Rs 101,000).

 

Support and Resistance

 

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