Fundamental News and Triggers

• Since there is a lot of uncertainty in the market about the tariffs that US President Trump plans to put on imports, the precious market is building momentum to hit record-high levels.
• Over the past ten years, the US trade deficit has almost doubled, rising from $500 billion to $850 billion in 2024. Due to these concerns, President Trump has requested that government agencies look into currency manipulation, unfair trade practices, and the US’s commercial agreements with Canada, Mexico, and China.
• By February 1, Trump has indicated that he intends to push up to 25% tariffs on goods entering the United States from Canada and Mexico. Trump also repealed regulations that had prohibited drilling in the majority of U.S. coastal waters and pledged to expedite American energy production.
• Canada and Mexico are major importers of gold and silver to the United States. 12% of US gold imports come from Canada, while 12% come from Mexico. The United States imports 18% of its silver from Canada and 44% from Mexico.

 

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) and $32.3 (~Rs 97500).

 

Support and Resistance

 

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