Fundamental News and Triggers
- Precious metals prices are supported by increasing investors’ worries, uncertainty over trade deals and a weaker Dollar Index. Following President Trump’s megabill’s passage in the Senate, gold has pared its gains as attention turns to the House of Representatives. It is anticipated that the bill will increase the deficit by US$3.3 trillion during the following ten years.
- As his July 9 deadline draws near, Donald Trump vowed to increase tariffs on certain nations and voiced his dissatisfaction over the deadlocked trade talks between the US and Japan. According to US Treasury Secretary Scott Bessent, nations may be informed that tariff rates may increase significantly from the temporary 10% level to the 11% to 50% rates that were announced on April 2.
- With the rising consensus that the Federal Reserve will soon resume its rate-cutting cycle, the US Dollar Index remains below 97, close to its lowest level since February 2022. This is considered good news for precious metals.
Technical Triggers
- Gold has sustained above $3300 (~Rs 96000), taking support on the uptrend line; $3400 (~Rs 98500) will be the next resistance.
- Silver Sep is expected to continue in range-bound trading between $35.5 (about Rs 104,500) and $37 (about Rs 107,500).
Support and Resistance
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