Fundamental News and Triggers
Precious Metals hit fresh record highs as geopolitical risks and Fed concerns intensify
- Gold and silver surged to new all-time highs, with gold crossing $4,600 and silver moving past $86, as investors rushed toward safe-haven assets. The rally was driven by rising concerns over the independence of the U.S. Federal Reserve, escalating geopolitical tensions, and renewed trade-related uncertainty.
- Market sentiment was rattled after U.S. federal prosecutors reportedly threatened action against Fed Chair Jerome Powell over comments made to Congress regarding a building renovation project. Powell has described the move as a “pretext” aimed at pressuring the central bank to cut interest rates, raising serious concerns about policy independence.
- Geopolitical risks continue to mount, with the U.S. stepping up its involvement in Venezuela, President Donald Trump warning of possible military action amid unrest in Iran, ongoing conflict in Ukraine, tensions between China and Japan, and renewed insistence by the White House on acquiring Greenland. Adding to the uncertainty, Trump warned that any country doing business with Iran could face a 25% tariff on all U.S. trade.
- U.S. officials also confirmed that President Trump will be briefed on Tuesday on potential responses to Iran, including sanctions, cyber measures, and military options—keeping global risk sentiment fragile and supportive for precious metals.
Technical Triggers
- Gold has decisively broken above its earlier resistance at $4,570, opening the door to higher levels. The next key targets are $4,745–4,750 (78.6% Fibonacci extension, ~₹1,46,000) and $4,966–4,970 (100% Fibonacci extension, ~₹1,52,500).
- Silver’s rally also looks set to extend further. Fibonacci projections point toward $88 (~₹2,78,000) and $93 (~₹2,93,000) in the coming weeks, while $70 remains a strong support zone.
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