Fundamental News and Triggers
Precious metals extend rally on safe-haven demand amid Venezuela turmoil
- Precious metals surged close to their previous high as Fed members’ dovish comments increased interest rate-cut bets and Venezuelan tensions boosted safe-haven demand.
- The US intervention on Venezuela and the capture of President Nicolas Maduro increased geopolitical risk, boosting demand for safe-haven metals.
- President Donald Trump stated on Sunday that Washington would temporarily “run” Venezuela and warned a second military intervention if Venezuela’s interim president, Delcy Rodriguez, did not agree with US demands.
- President Donald Trump has threatened another strike if Caracas continues to defy US efforts to open up its oil business and combat drug trafficking, and he has considered taking action against Colombia and Mexico over illegal drug flows.
- Another advance toward fresh record highs is likely if international tensions rise further or incoming US data validates thoughts that the Fed will need to relax more forcefully than presently priced.
Technical Triggers
- Gold prices have rebounded from $4300 and cleared the resistance of $4450 (~Rs 138,000). The next resistance is $4550 (~Rs 140,000) and $4600 (~Rs 141,000)
- Silver prices have rebounded from $70 support and are taking resistance at $79 (~Rs 251,000). If prices sustain above this resistance, the next level to watch for is $82 (~Rs 255,000) and $84 (~Rs 260,000)
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