Fundamental News and Triggers

• Gold is on the verge of hitting record highs and could do so within the next day or two. The remarks made by newly elected US President Donald Trump on tariffs are driving the bullish momentum.
• On February 1, U.S. President Donald Trump announced that his government was considering levying a 10% tax on Chinese imports. He also promised levies on imports from Europe, though he did not elaborate on this. Canada and Mexico might face levies of roughly 25% by February 1st, he had previously said.
• Following Trump’s remarks regarding tariffs for China, Mexico, and Canada, silver futures experienced a small uptick. Trump’s proposed policies are widely viewed as inflationary, which could force the Federal Reserve to maintain its hawkish stance and keep interest rates higher for longer to curb rising price pressures. Mexico is the top producer of silver, and it is unclear whether the tariffs would apply to imports of the metal.

 

Technical Triggers

• Gold has given a breakout from its symmetrical triangle, and prices have sustained above $2750 (~Rs 79100), so we can see further momentum towards $2800 (~Rs 80500) this week.
• Silver prices have given a bullish breakout from its symmetrical triangle pattern by trading above $30.5 (~Rs 92000). If prices sustain above this level, we could see more gains up to $31.3 (~Rs 94000) and $32.3 (~Rs 97500).

 

Support and Resistance

 

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