Fundamental News and Triggers

• Gold prices have plummeted by over $200 (~Rs 4000) from their high of $3509 (~Rs 99350) due to U.S. President Donald Trump’s retraction of threats to fire Federal Reserve Chair Jerome Powell and expressed optimism for a trade deal with China, decreasing gold’s safe-haven appeal.
• At a news conference yesterday, US President Donald Trump stated that his conversations with China are going well and that he believes they will achieve an agreement. He stated that China’s tariffs would not be as high as 145%, but would not be zero.
• Despite his frustration with rising interest rates, Trump stated that he does not intend to fire Fed Chair Jerome Powell.
• Russian President Vladimir Putin has indicated that he is willing to lead talks with his Ukrainian counterpart, Volodymyr Zelenskyy, raising hopes for a ceasefire deal and bolstering investors’ appetite for riskier assets.

Technical Triggers

• As suggested yesterday, if prices fall below $3450 (~Rs 97000), we may see a topping-out signal and profit-booking can move prices southward to around $3300, the same thing has happened. Now prices are expected to trade in the range of $3320 (~Rs 95500) to $3400(~Rs 96500).
• Silver prices have been trading in the range of $32 (~ Rs 94000) and $33 (~ Rs 97000) and are expected to continue same range this week.

Support and Resistance

 

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