Fundamental News and Triggers
- As dovish monetary policy prospects and fresh fears of US tariffs bolstered the attraction of bullion, gold moved up toward $3450 and silver above $38. President Trump declared that all imported chips and semiconductors will be subject to a 100% tariff, except for US-based manufacturers. Additionally, he revealed that levies on some Brazilian items were increased to 50% and that Indian imports will be subject to an additional 25% levy.
- Expectations of a rate decrease in September, with a second probable in December, have been strengthened by unsatisfactory US economic statistics and indications of a cooling labour market.
- Meanwhile, before the end of the week, President Trump is anticipated to name a replacement for departing Fed Governor Adriana Kugler. Additionally, he said that four candidates are being considered to succeed Fed Chair Jerome, renewing concerns over the central bank’s independence.
Technical Triggers
- Gold has been consolidating around its resistance zone of $3440-50 (~Rs 101,300-500). If prices sustain above this, we might see follow-through buying towards the next psychological level of $3500 (~Rs 103,000).
- Silver is holding up gains after taking support around $36.5 (~Rs 109,000). Upside momentum could continue towards $38.5(~Rs 115,000), taking clues from gold.
Support and Resistance
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