Fundamental News and Triggers
- Gold reached a fresh high above $3500, with the Bank of England lowering interest rates for the sixth time this year and jobless claims increasing more than anticipated this week. The United States has placed taxes on imports of one-kilogram gold bars. Investors believe a rate cut in the United States is imminent as a result of the developments.
- Imports of one-kilogram gold bars were subject to taxes in the US, with Switzerland’s recently declared 39% tariff rate being one of the highest the Trump administration has levied. The rule states that duty amounts on one-kilogram and 100-ounce gold bars are now governed by a separate customs law. Switzerland, the largest gold refining hub in the world, which exports substantial amounts of refined bullion to the United States, may be greatly impacted by the decision.
Technical Triggers
- As suggested yesterday, Gold sustained above its resistance zone of $3440-50 (~Rs 101,300-500) and follow-through buying took prices towards the next target level of $3500 (~Rs 102,200).
- Targets also achieved in Silver as prices touched its resistance level of $38.5(~Rs 115,000), taking clues from gold.
- As Gold and Silver prices have touched resistance, prices are expected to consolidate in a range today with some profit booking due to the weekend.
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.
