Fundamental News and Triggers

• Gold prices fell more than 3% yesterday after reaching $3500, and the market appears to have peaked in the short term. Markets are still digesting President Donald Trump’s softer tone on the US-China trade war, as well as his turnaround on wanting to fire Federal Reserve Chair Jerome Powell.
• Treasury Secretary Scott Bessent said Wednesday that heavy tariffs between the United States and China must be decreased before trade talks can proceed, but he emphasized that President Trump will not unilaterally lower duties on Chinese imports. However, he noted that a full trade agreement could take two to three years to complete.
• Although recession worries have subsided, the global economy has already suffered significant harm, and rebuilding trust in the United States as a dependable trade partner will take time. In this context, gold is projected to be highly supported.

Technical Triggers

• In the short term, gold prices are expected to trade in the range of $3270 (~Rs 94000) to $3400(~Rs 96500). The long-term technical outlook will only turn negative if we begin printing lower lows and lower highs.
• Silver prices have given a breakout above $33(~Rs 97000), now the next target is $35 (~Rs 100,000).

Support and Resistance

 

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