Fundamental News and Triggers

• As investors awaited a significant U.S. inflation report, Federal Reserve Chair Jerome Powell’s hawkish remark solidified thoughts of slower rate cuts this year, causing gold prices to decline yesterday after hitting an all-time high the previous session.
• Powell stated on Tuesday that the economy is doing well and that the Fed is not in a rush to lower interest rates any further, but it is ready to do so if inflation declines or the labour market contracts.
• Trump also hinted that he would consider enacting further tariffs on computer chips, pharmaceuticals, and cars, which stoked concerns about a worldwide trade war and supports the safe-haven precious metal. The upward trend in gold remains intact notwithstanding the uncertainty around tariffs and the resulting safe-haven flows.

 

Technical Triggers

• Gold Apr Futures has seen some profit-booking ahead of US Inflation data after touching a record high of $2968 (~Rs 85350) yesterday, where $2907 (~Rs 84700) is an important support level. If it breaks this level, we are likely to see more retracement in the short term towards $2880 (~Rs 83900) and $2850 (~Rs 82900). Gold prices must sustain above $2935 to maintain their upward momentum of $3000 (~Rs 87500).
• Silver is still facing resistance at $33 (~Rs 96000). If prices sustain above this level, we are likely to see a 5% up move for the target $35 (~Rs 101,000).

 

Support and Resistance

 

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