Fundamental News and Triggers
Gold and Silver fall as commodity index adjustments weigh ahead of US jobs data.
- Silver fell 5% to $74 yesterday as investors braced for the yearly rebalancing of major commodities indices, which will result in billions of dollars in futures contracts sold in the coming days.
- Traders expected the release of the latest US jobs report, as well as a Supreme Court ruling on President Donald Trump’s use of emergency tariff powers.
- The United States Senate voted on Thursday to approve a measure that would prohibit Trump from launching further military action against Venezuela without congressional authorisation, despite the president’s statement that US “oversight” of Venezuela might last for years.
- The annual Bloomberg Commodity Index rebalancing, which adjusts commodity weightings to keep the index consistent with market circumstances, begins this week and is likely to keep the precious metals market under pressure.
Technical Triggers
- Gold prices are consolidating after touching the psychological level of $4500 (~Rs 139,000). Downside support is $4350 (~Rs 135,000), and resistance is $4550 (~Rs 140,000).
- Silver prices have touched their previous peak of $82.6 (~Rs 260,000) again this week, creating a double top formation. We have seen profit booking up $74 (~Rs 235,000), next support is $70(~Rs 225,000) and $68.50, if profit-booking intensifies further. However, if prices break the previous top again, the next level to watch for is $84 (~Rs 266,000) and $88.5(~Rs 280,000).
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