Fundamental News and Triggers

• The gold price reached an all-time high of $3371 (~Rs 95894) as the tariff war between the world’s largest powerhouses escalated further. US President Donald Trump has ordered his team to investigate potential new tariffs on all imports of critical minerals, to reduce their dependency on China.
• In response to Donald Trump’s heavy reciprocal tariffs on rare minerals, Beijing has set severe curbs on their exports to the United States.
• Investors are questioning the integrity of the US dollar in light of Trump’s unexpected decision on international policies. The US dollar has been falling sharply as investors fear that the US-China trade war will be more severe for the US economy than for the rest of the globe.
• Gold is also receiving support after Fed Chair Powell stated that a weaker economy and high inflation could conflict with the central bank’s two aims, resulting in a stagflationary scenario.

Technical Triggers

• Gold has achieved all bullish targets up to $3320 (Rs 95300). Now it’s time to be very cautious, as all negative news is already discounted in the prices and the rally seems to be overstretched. Buying is not advisable as the risk-reward does not match. Short-term weakness can emerge up to $3280 (~Rs 93000) if prices sustain below $3330 (~Rs 95500)
• Silver after achieving the target of $33 (~Rs 96500), the rally seems to be weakening. It’s better to be on the sidelines until a new trend emerges.

Support and Resistance

 

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