By Dr. Renisha Chainani, Head- Research, Augmont – Gold for all

Due to the uncertainty surrounding U.S. policies, trade tensions, global military conflicts, and overall socioeconomic uncertainty, gold reached a record high of $2968 (~Rs 86350) for a week before retracing lower.

• The dollar fell to a two-month low on Thursday as President Donald Trump stated that reciprocal trade duties would be applied to nations one at a time rather than all at once.
• Although dollar weakness was the main element driving gold higher, it was caused directly by two factors: the January Producer Price Index report and worries about tariffs. In contrast, the U.S. producer inflation data came in stronger than anticipated after a hot consumer inflation report on Wednesday, supporting the belief that the Federal Reserve would not be lowering interest rates shortly. Concern has increased since Trump announced that he would impose reciprocal tariffs on nations that tax US imports.
• President Donald Trump’s announcement that the US will mediate a ceasefire negotiation with Moscow over Russia’s war with Ukraine raised hopes that the crisis may end and has caused gold prices to retrace to $2900 (~84700) on Friday.

Gold Apr Futures Daily Chart

Gold prices were trading in the overbought zone for the past few days, so we have seen retracement. The next immediate support for Gold Apr Futures is $2980(~Rs 83900) and $2830 (~Rs 82300). The bull run in Gold looks set to continue, with prices likely to hit $3000 (Rs 87500-88000 at MCX) in a few days.

Silver Mar Futures Daily Chart

For Silver, prices need to sustain above $33 (Rs 96000), for the next target of $35 ~ above the Rs 1 lakh level in MCX.

 

 

 

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 of any kind 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.