Fundamental News and Triggers

• The United States and China decided to reduce import duties on each other’s goods for ninety days to de-escalate their trade war.
• The United States will lower additional tariffs it slapped on Chinese goods from 145% to 30%, and Chinese charges on US imports will drop from 125% to 10%. The new measures will take effect for the next ninety days.
• Investor attention will now shift to the agreement’s specifics and what transpires after ninety days, but U.S. inflation data will be in focus today.
• Amid the height of tariff-induced fear in mid-April, traders were pricing in nearly 100 basis points of cuts; currently, they are pricing in 57 basis points this year.

Technical Triggers

• Gold prices may drop to $3200 (~Rs 92000) if they remain below $3365 (~Rs 94000) this week. And we are expected to see a $200 decline from those levels up to $3000 (~Rs 86000) if prices break and hold below $3200, which is the Double Top formation’s neckline support.
• Silver prices are expected to get momentum now, as the tariff war has de-escalated. We are likely to see prices touching $34(~Rs 990000) and $35(~Rs 102,0000) soon in the coming days.

Support and Resistance

 

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