Fundamental News and Triggers

• Gold prices bounced up about $100 (~Rs 1500) from their intraday lows as investors appeared to be shifting back to safe-haven assets due to a slowdown in the pace of discussions between Russia and Ukraine and less-than-expected US data.
• As consumers reduced their spending on vehicles, sporting equipment, and other imported goods due to worries about rising prices brought on by tariffs, US retail sales barely increased in April.
• Concurrently, the PPI prices unexpectedly dropped due to a 1.6% decline in wholesalers’ and retailers’ margins, suggesting that businesses may be mitigating some of the effects of higher tariffs.
• Moreover, Trump claimed that no progress on Ukraine will happen unless he meets with Putin, while the Ukrainian president argued that Moscow’s low-ranking diplomats dispatched to Istanbul for peace talks indicate a lack of genuine determination.

Technical Triggers

• As Gold prices have broken the Double-top neckline support of $3200, more downside is expected up to $3000-50 (~Rs 87000 – 88000) in the short term.
• Silver prices are expected to get momentum now, as the tariff war has de-escalated. We are likely to see prices touching $34(~Rs 99000) and $35(~Rs 102,0000) soon in the coming days.

Support and Resistance

 

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