Fundamental News and Triggers
Precious Metals fall on easing geopolitical tensions
- Gold and silver prices declined on Tuesday as safe-haven demand eased amid improving geopolitical developments and a stronger U.S. dollar.
- U.S. President Donald Trump indicated indirect involvement in upcoming U.S.–Iran nuclear discussions in Geneva, raising hopes of diplomatic progress. At the same time, fresh Ukraine–Russia talks reduced immediate geopolitical tensions. As risk sentiment improved, some investors reduced defensive positions in precious metals.
- Markets are now focused on the minutes of the Federal Reserve’s January meeting, which are expected to provide guidance on the interest rate outlook. Current expectations suggest the first rate cut could come in June, keeping monetary policy supportive in the medium term.
- Overall, the recent decline appears to be a short-term correction driven by easing geopolitical risks and currency strength, rather than a shift in the broader supportive outlook for precious metals.
Technical Triggers
- In the short term, gold prices are likely to consolidate within the $4,650–$5,100 range (~ ₹147,000–₹ 160,000). A buy-on-dips and sell-on-rallies approach is advisable.
- Silver is also expected to trade weak and consolidate in the $70–$90 range (~ ₹225,000 – ₹285,000). Traders should follow a buy-on-dips, sell-on-rallies strategy. A breakdown below $70 may trigger further downside toward $64 (~ ₹200,000).
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