Fundamental News and Triggers
- Yesterday, gold fell more than $100 due to two significant unfavourable news reports.
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- Safe-heaven flows in gold were reportedly reduced due to rumours of a ceasefire agreement between Israel and Hezbollah.
- Hedge fund manager Scott Bessent has been selected by President-elect Donald Trump to lead the US Treasury upon his inauguration in January 2025. Due to Bessent’s image as a cautious operator who is likely to restrain some of President Trump’s more aggressive trade and economic plans, gold is losing ground.
- However, as trade war fears helped, gold prices later found support and rose as Donald Trump, vowed to levy a 10% tariff on all imports from China and a 25% tariff on all goods entering the US from Canada and Mexico.
- The FOMC minutes are currently regarded by market participants as indicators of the upcoming rate-cut trajectory, which will fuel demand for the USD and provide the commodity with a further boost.
Technical Triggers
- Gold is showing very volatile moves with support at $2600. Prices are expected to trade in the range of $2600 (~Rs 75000) and $2700(~Rs 77000) for the next few days.
- Silver has strong support at $30 (~Rs 87500), prices are expected to rebound and consolidate here for the next few days.
Support and Resistance
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