Fundamental News and Triggers

• The positive developments that a ceasefire in the Israel-Hamas battle in Gaza is getting closer and that talks to end the conflict are nearing completion are causing a decline in the price of precious metals.
• But following a disappointing PPI, bullion prices are attempting to rise from the weekly low, driven by expectations of looser Fed policies. The impending CPI is the main focus; cooler data may increase the likelihood of rate reduction. The disinflation trend may be ongoing if December readings fall short of the 2.7% figure from the previous month. After increasing 2.4% YoY in September, inflation has increased to 2.6% since October.
• Trump tariffs might raise inflation, which would affect gold prices and market mood. Donald Trump will become the next president of the United States in six days. Although his threats have mostly targeted China, Canada, and Mexico, he has threatened to implement worldwide tariffs. A trade war might rekindle inflation if he moves forward with this.

 

Technical Triggers

• As suggested in the last report, Gold has achieved the target of $2720 (~Rs 78500). Gold could see some profit-booking for the next 2-3 days now.
• Silver prices have corrected after touching the target of Rs 92500. It seems prices shall consolidate here for a while.

 

Support and Resistance

 

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