Fundamental News and Triggers

• As worries about a global trade war grew, U.S. President Donald Trump’s intentions to put reciprocal tariffs on all nations that tax U.S. imports kept gold prices rising for a seventh consecutive week.
• Yesterday, Trump presented a plan to apply reciprocal tariffs on those nations that levy taxes on US goods. However, it is not due until April 1st, and officials in charge of business and economics must research reciprocal tariffs against nations that impose tariffs on US exports.
• Following Wednesday’s inflation report that showed consumer prices had increased at the fastest rate in almost a year and a half, data released on Thursday indicated the U.S. producer pricing index (PPI) witnessed a robust climb in January.

 

Technical Triggers

• Gold Apr Futures fell below the $2907 (~Rs 84700) support level and retraced towards $2880 (~Rs 83900) but prices didn’t sustain at lower levels and quickly bounced back after Inflation data. Gold prices have sustained above $2935 resistance for a two-day closing, so it is likely to maintain its upward momentum of $3000 (~Rs 87500) in a few days.
• Silver is still facing resistance at $33 (~Rs 96000). If prices sustain above this level, we are likely to see a 5% upmove for the target $35 (~Rs 101,000).

 

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.