Fundamental News and Triggers

• Following Trump’s call for an immediate reduction in US interest rates, gold has reached an all-time high in Indian markets, trading at Rs 80000, and is almost at an all-time high in the international market, trading around $2780.
• Trump also stated that tariffs on imports from China, Canada, Mexico, and the European Union could be imposed on February 1st, but nothing is known about his trade policies.
• The ECB is predicted to lower interest rates next week, the Fed is projected to keep rates steady, and the BoJ has raised rates today.
• Furthermore, in 2024, governments, monetary authorities, and central banks all remained net purchasers of gold. After purchasing a record 1082 tons of gold in 2022, the central banks added 1037 tons in 2024, the second-highest yearly purchase in history. Gold is seen by central banks as a safe and reliable strategic asset.

 

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).

 

Support and Resistance

 

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