Fundamental News and Triggers

• Gold prices are fluctuating between $3270 (~Rs 94300) and $3380 (~Rs 96200), indicating contradictory signals from US-China trade talks.
• S. President Donald Trump stated that trade talks with China are now occurring, contradicting Chinese allegations that no discussions have taken place to resolve the ongoing trade war.
• On Friday, China exempted several US products from its 125% tariffs, indicating a potential resolution to the trade conflict between the two countries.
• Long-term support comes from risk aversion demand, while tariffs and geopolitical turmoil will keep gold prices stable.
• Gold buyers seize control as risk-off sentiment spreads through financial markets. US dollar and Treasury yields fall as speculators anticipate further Fed rate cuts. Traders are bracing for a critical US data week, with GDP, Core PCE, and NFP all in focus.

Technical Triggers

• The creation of a “Shooting Star” candlestick pattern in the weekly charts, indicates a probable uptrend reversal, which was an intriguing technical component of gold’s price movement last week. If prices sustain below $3300 (~Rs 95000) this week, they may fall 50% to $3240 (~Rs 93000) and 61.8% to $3175 (~Rs 91500).

Support and Resistance

 

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