Fundamental News and Triggers
Gold goes parabolic eyeing $4400
- Gold is on track for its greatest week in almost 17 years, with prices touching $4392 and aiming for $4400 today. Investors were drawn to the safe-haven gold by hints of weakness in U.S. regional banks, global trade tensions, and additional rate-cut anticipation.
- Due to central bank purchases, ETF inflows, and high demand for safe assets, gold has now increased by more than 60% this year.
- China has expressed a willingness to engage in trade talks while accusing the US of causing “panic” over its rare earth mineral controls.
- She claims that the bloated valuation and unsustainable U.S. fiscal outlook continue to be obstacles for the dollar. The dollar’s popularity has waned as investors doubt American exceptionalism and policymaking.
Technical Triggers
- For gold $4500 could arrive as a sooner-than-expected target, but much may depend upon how long concerns about U.S.-China trade and the government shutdown linger over the market for.
- Silver has cleared the strong resistance at $53.50 (¬Rs 165,000), next resistance is $55 (¬Rs 170,000). While downside support is $50.50 (¬Rs 155,000), if prices sustain below that level, profit-booking can follow.
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