Fundamental News and Triggers

• Gold prices rise to a one-week high amid geopolitical worries. The Israeli airstrike on Lebanon’s capital in retaliation for a missile fire in the Golan Heights on Saturday elevated the possibility of escalating geopolitical tensions in the Middle East.
• The cut in gold import tariff in India has resulted in a 4-month low in local gold prices, leading to a major spike in demand for gold in the past week. As a result, the price premiums requested by dealers in India over official domestic rates, including the import and sales taxes required, have grown much to $20 per ounce, which is the highest amount in 10 years.

Technical Triggers

• As suggested, last week’s low of $2350 (~Rs 67400) will act as a short-term base for gold prices, we have seen gold rebounding from those levels towards $2460 (Rs 69000). The next resistance is $2475 (~ Rs 69500) and the previous high of $2488 (~ Rs 70000).
• Silver rally which started from Rs 68000 to Rs 96000 in 2024, has almost retraced 50% to around Rs 82000. Silver prices seem to have formed a base around $27.5 (~Rs 80300) in the short term and a rebound is expected from here with the next resistance of Rs 85500.

 

Support and Resistance

 

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