Fundamental News and Triggers
Gold crosses $4850 and silver breaches $95 on risk-off sentiment
- Markets remain on edge after U.S. President Donald Trump announced that imports from several European countries would face 10% tariffs from February 1, escalating to 25% from June 1, unless an agreement is reached on what he termed the “complete and total purchase” of Greenland.
- Investors are closely watching Europe’s response to the tariff threat against eight nations opposing the move, as well as developments from Davos, where Trump is expected to discuss the issue with global leaders.
- These developments signal a growing phase of resource nationalism among major powers, with the U.S. stance toward its NATO allies unsettling global markets. Equity markets have declined in tandem, reviving the “Sell America” trade and driving investors toward safe-haven assets.
- Against this backdrop of rising geopolitical risk and macro uncertainty, gold demand has strengthened sharply, with prices potentially extending their rally toward $5,000/oz as risk-off sentiment persists.
Technical Triggers
- As highlighted this week, Gold has already crossed the resistance of $4750 (78.6% Fibonacci extension, ~₹1,50,000), next resistance is $5000 (100% Fibonacci extension, ~₹1,65,000).
- The next upside levels to watch are the 78.6% Fibonacci extension at $99–100 (~ ₹3,50,000) and the 100% Fibonacci extension near $107 (~ ₹400,000). On the downside, $90 (~ ₹3,05,000) remains a strong support area.
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