By Dr. Renisha Chainani, Head- Research, Augmont – Gold for all
Gold is expected to finish the year up 27%, its greatest yearly performance since 2010. This spike has been supported by central bank purchases, rising geopolitical risks, and major central banks’ monetary easing. Rising global tensions have supported gold’s resiliency this week. Investors are paying close attention to conflicts in Eastern Europe and the Middle East. President-elect Donald Trump’s comments about annexing Canada, the Panama Canal, and Greenland have increased geopolitical uncertainty and tensions.
Last week, the Federal Reserve suggested a more cautious expectation for more rate cuts in 2025, indicating a shift in its monetary policy stance. The Federal Reserve indicated in its latest economic estimates that it intends to decrease interest rates only twice next year. This development underlines doubts about potential policy changes in light of the incoming Trump administration’s planned economic strategies. Going forward, a stagflationary environment will benefit gold because rising inflation in a slow-growth economy will force real yields lower.
On Thursday, Russia’s Federal Security Service stated that it had foiled three murder attempts by Ukrainian intelligence aimed against high-ranking Russian officers and their families in Moscow. The attackers planned to use bombs disguised as power banks or document folders. Gold and Silver see safe-heaven buying on this news.
Domestic Gold Daily Chart
Gold has been taking support at the uptrend line for the past two months. If the same trend is to be followed, Gold will rebound from current levels of Rs 76000 towards Rs 78500 again. If prices sustain below Rs 76000, the next target is Rs 75000.
Domestic Silver Daily Chart
Similarly, Silver has been consolidating in the descending triangle with support at Rs 86500 and resistance at Rs 94000. Buy on dips in the range of Rs 87000-88000 and selling on rallies around Rs 94000 level should be the strategy used.
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