Fundamental News and Triggers
Precious metals witness profit-booking ahead of NFP data
- Precious metals saw profit-booking as traders locked in profits ahead of the US NFP report as investors weighed mixed US economic data, while geopolitical risks remained a significant focus.
- US job vacancies declined more than expected in November after rising somewhat in October, while a separate ADP report showed that private payrolls climbed less than predicted in December.
- Investors are now turning to Friday’s nonfarm payrolls report for clues on the central bank’s policy direction, with markets expecting two rate cuts this year.
- On the geopolitical front, Washington announced preparations to take long-term control of Venezuelan petroleum sales, while US officials detained several Venezuela-linked vessels.
- The White House also revealed discussions about seizing Greenland, including possible military involvement.
- The resilient global risk mood has begun to show indications of weakness as a result of escalating geopolitical tensions, which could act as a tailwind for the safe-haven commodity.
Technical Triggers
- Gold prices have rebounded after touching psychological level of $4500 (~Rs 139,000). Downside support is $4350 (~Rs 135,000) and resistance is $4550 (~Rs 140,000).
- Silver prices have touched its previous peak of $82.6 (~Rs 260,000), creating double top formation. We could see some profit booking from here, but when it breaks previous top again, the next level to watch for is $84 (~Rs 266,000) and $88.5(~Rs 280,000).
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