Fundamental News and Triggers
- A stronger US currency after President Trump imposed greater tariffs on several nations caused gold prices to wane to around $3300.
- Trump reinstated a global base tariff of 10% and levied up to 41% punitive levies on countries that do not have trade agreements with the US. Additionally, he declared a 40% tax on products that are thought to be diverted through other nations to get around current taxes.
- Both core and headline PCE prices in June exceeded forecasts, according to US statistics, which exacerbated worries about ongoing inflation in important economic sectors and made it more difficult to predict a rate decrease in September.
- Due to pressure from a stronger US dollar and less geopolitical uncertainty, silver prices fell to $36.50, the lowest level since July 9. Silver is still more than 1% higher in July despite the recent decline. On July 22, it briefly reached $39, the highest level since August 2011, due to a tightening physical supply.
Technical Triggers
- For the past two months or so, gold has been trading between $3250 and $3450. We anticipate that it will go toward the lower end of this range and possibly break it.
Support and Resistance
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