Fundamental News and Triggers
- Gold price is fluctuating in a narrow range as traders process the ADP employment data contraction from yesterday and anticipate a lower Nonfarm Payroll report today. According to ADP data, private-sector payrolls unexpectedly dropped in June for the first time in over two years, causing new worries about the resilience of the job market and bolstering the argument for a more liberal monetary policy.
- Additionally, President Trump declared that the United States and Vietnam had reached a trade agreement that would allow American goods to have more access to the Vietnamese market in exchange for the lifting of some of the punitive tariffs on Vietnamese goods.
- Trump said the United States will impose 20% tariffs on Vietnamese goods in exchange, rather than the 46% duties he had declared in April. As July 9th draws near, the agreement is interpreted as a sign that other agreements might be in the works and as hope that trade tensions will not rise again. Additionally, the accord stoked expectations for future bilateral trade agreements.
Technical Triggers
- Gold is expected to trade in the range of $3300 (~Rs 96000) and $3400 (~Rs 98500) this week, and
- Silver is expected to trade in the range of $35.5 (~ Rs 104,500) and $37 (~ Rs 107,500).
Support and Resistance
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