Fundamental News and Triggers

• Due to increased geopolitical tensions in the Middle East, Eastern Europe, and India-Pakistan, as well as ongoing market uncertainty over U.S. trade policies, gold is up 2% on the week.
• Ahead of a planned meeting between US and Chinese officials in Switzerland, President Trump said he would not consider lowering the US’s 145% tariffs on China to advance trade-war negotiations with Beijing, stifling hopes for a breakthrough.
• In the meantime, the Federal Reserve reaffirmed its cautious approach on future rate changes by warning of growing inflation and unemployment risks and holding its benchmark interest rate constant as anticipated, which put pressure on gold.
• In addition, Fed Chair Powell stated that the central bank is not contemplating a proactive rate reduction in reaction to the possible economic consequences of Trump’s tariffs.

Technical Triggers

• Gold prices have given a breakout above $3380 (~Rs 96000), it seems this rally will continue towards $3450 (~Rs 98000) again.
• Silver prices are expected to consolidate between $32 (~Rs 93500) and $34(~Rs 98500).

Support and Resistance

 

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