Fundamental News and Triggers
Precious Metals well supported on safe-haven demand
- Safe-haven demand – Precious metals found support as safe-haven demand strengthened amid rising geopolitical tensions. The United States increased its military presence in the Middle East, heightening concerns over a potential conflict with Iran. At the same time, Ukraine–Russia peace talks ended without any meaningful breakthrough, reinforcing global uncertainty and supporting demand for gold and silver.
- Geopolitical Tensions – U.S. President Donald Trump warned that Iran must reach an agreement on its nuclear program within 10 days or face consequences, further intensifying geopolitical risks. This continued fragility has embedded a risk premium in global markets, underpinning precious metals.
- Economic Data – On the economic front, minutes from the Federal Reserve’s January 27–28 meeting revealed a divided stance among policymakers. Some members signaled openness to rate hikes if inflation remains elevated, while others favored rate cuts should price pressures moderate. This policy uncertainty is likely to keep volatility elevated in the precious metals market.
Technical Triggers
- As indicated in the previous report, gold has rebounded from its key support level near $4,850 (~ ₹1,50,000) and is now gradually advancing toward the resistance zone around $5,100 (~ ₹1,60,000). One may consider a buy-on-dips strategy near support levels and book profits on rallies closer to resistance, until a decisive breakout occurs.
- Silver has bounced from its support zone of $70–$90 (~ ₹2,25,000). Prices are now heading toward the resistance levels of $85 (~ ₹2,68,000) and $90 (~ ₹2,85,000). Given the volatility in silver, a buy-on-dips and sell-on-rallies approach remains appropriate within the current trading range.
Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advice. The author, directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above-mentioned opinions are based on information that is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors, other employees, and any affiliates of Augmont Enterprise Private Ltd. cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee, or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or that the losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. The information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management, or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.
