Fundamental News and Triggers

• As global trade tensions eased, demand for safe-haven assets declined, causing gold to drop 2% and hit a low of over five weeks.
• President Trump cited ongoing talks with South Korea, Japan, and India, while the US and China agreed to drastically reduce tariffs and launched a 90-day truce to conclude a larger deal.
• As tensions between India and Pakistan stabilised and hopes that Trump would waive sanctions on Syria during his Middle East visit increased, geopolitical risks also decreased.
• In the meantime, lower-than-expected US inflation figures bolstered anticipations of potential rate cuts by the Federal Reserve, which are generally favourable for non-yielding assets.
• For more hints about the monetary policy outlook, traders are now waiting for US PPI and retail sales data.

Technical Triggers

• As expected, Gold has touched and dropped below $3200 (~Rs 92000), and this target has been achieved. As prices have broken the Double-top neckline support, more downside is expected up to $3000-50 (~Rs 87000 – 88000) in the short term.
• Silver prices are expected to get momentum now, as the tariff war has de-escalated. We are likely to see prices touching $34(~Rs 99000) and $35(~Rs 102,0000) soon in the coming days.

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.