Fundamental News and Triggers

• Gold and silver prices remain under pressure, as it appears that a major futures trader was either dumping long holdings or constructing new shorts.
• According to the Finance Ministry, the import charge on precious metals findings and coins will now be 15%, up from 10% before, effective January 22. The Ministry stated that the step was implemented to reduce the tax advantage of importing gold and silver in the form of finds rather than bars, which already had a 15% duty charge.
• Gold and Silver are also seeing some profit booking as per the CME Fed Watch Tool, markets expect a 42% likelihood of a rate cut in March, compared to an 80% chance last week.

Technical Triggers

• Gold prices are trading in the range of $2010 (~Rs 61800)  to $2035 (~Rs 62250). Prices need to give either side a breakout for a new direction.
• Silver has touched important support of $22 (~Rs 70400), prices could consolidate here and then start rising again.

Support and Resistance

 

 

 

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