Fundamental News and Triggers

• US President Donald Trump imposed fresh 25% tariffs on most Mexican and Canadian imports on Tuesday, as well as raising penalties on Chinese goods to 20%.
• Canada declared retaliatory duties on more than $100 billion in US imports, while China imposed tariffs of up to 15% on certain US agricultural exports.
• In his inaugural address to the US Congress, Trump stated that additional taxes, including “reciprocal tariffs,” would be imposed on April 2, raising the prospect of an all-out trade war.
• Investors are concerned that Trump’s tariffs would hinder US economic growth and push the Federal Reserve to slash interest rates multiple times before the end of the year.
• Other factors supporting the non-yielding yellow metal include the potential of an earlier-than-expected interest rate cut by the Fed and unfavourable sentiment towards the US dollar.

 

Technical Triggers

• Gold Apr Future prices continue its rebound above $2900 (~Rs 85400), with the next resistance to look for $2940 (~Rs 86300) and $2975 (~Rs 87000).
• Silver May Futures is gaining strength and if sustains above $33(~Rs 96700), the next target is $34(~Rs 100,000), and once it sustains above that, it can head higher towards $35(~Rs 103,000).

 

Support and Resistance

 

Disclaimer: This report contains the author’s opinion, which is not to be construed as investment advice. The author, Directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors other employees and any affiliates of Augmont Enterprise Private Ltd cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.