Fundamental News and Triggers

• Gold prices have slipped by the easing of tariffs and the willingness of both the United States and China to listen and back off. The United States has reached out to China for talks regarding President Donald Trump’s 145% tariffs, and Beijing is amenable to them.
• Meanwhile, U.S. manufacturing shrank for a second consecutive month in April as supply chains were constrained by tariffs on imported goods, which kept prices high at the factory gate and prompted some companies to fire employees.
• The US NFP data which is expected to be announced today is expected to show a 130,000 job gain in April, down from a stellar 228,000 job creations reported in March. A reading below 100,000 could raise concerns about the impact of tariffs on the US labor market and bring a rebound in gold price.

Technical Triggers

• Gold prices have retraced 50% of their rally from $2970 (~Rs 86650) to $3509 (~Rs 99350). Now we can expect some consolidation to bearishness towards $3200(~Rs 92000) and $3170(~Rs 91500).
• Silver prices are expected to consolidate between $32 (~Rs 93500) and $34(~Rs 98500).

Support and Resistance

 

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