Fundamental News and Triggers
- Gold prices are currently trapped around the $3270 to $3420 region as the current consolidation pattern continues into the twelfth week. But rebounding dollar, which is driving the lower price action, the possibility of increased trade tensions could provide support.
- Japan has been notified in writing by US President Donald Trump that all Japanese imports into the US will be subject to a 25% duty starting on August 1.
- The leaders of 12 other nations received similar letters, alerting them of the imposition of 25% to 40% tariffs beginning next month.
- Trump’s announcements further damaged risk sentiment, which fueled a new surge in the price of gold, a classic safe-haven asset, as worries of a trade war were rekindled around the world by the repeated tariff threats.
Technical Triggers
- Gold is expected to trade in the range of $3300 (~Rs 96000) and $3400 (~Rs 98500) this week.
- Silver has given a breakout of its range, trading above $37 (~ Rs 108,000). Now next target is $38 (~Rs 111,000)
Support and Resistance
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