Fundamental News and Triggers
Precious Metal consolidates after record peak, US CPI data in focus
- As market risks have escalated, such as inflationary worries, mounting public debt, and weakening U.S. growth, gold prices have reached all-time highs.
- Exchange-traded fund flows, especially in Asia, have been a swing factor for gold prices. Further price increases may be supported by indications that the flow momentum is increasing.
- As the Middle East tensions erupted, Poland claimed to have shot down Russian drones that had violated its airspace during a major attack in western Ukraine, and US President Donald Trump urged the EU to impose tariffs of up to 100% on China and India to pressure Russia over the war in Ukraine. Geopolitical risks also supported demand for safe-haven assets.
Technical Triggers
- After achieving the target of $3700 (~Rs 110,000) in gold, we can see some profit-booking up to $3600 (~Rs 108,000), if prices fall below $3655 (~Rs 108,800). Meanwhile, if the uptrend continues above $3700 (~Rs 110,000), the next target would be $3800 (~Rs 113,500).
- Silver Nov Future prices have been consolidating in the range of $41 (~Rs 123,000) and $42 (~Rs 126,000) for the past few days. Either side – breakout or breakdown will make a 2-3% sharp move.
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