Fundamental News and Triggers

• The US has put a 104% tariff on Chinese goods, raising tensions between the world’s two largest economies and causing market volatility. The White House acknowledged that the new tariff structure, which takes effect on April 9, follows President Donald Trump’s ultimatum to Beijing to reverse its retaliatory 34% taxes on American imports.
• This adds to concerns that an all-out trade war could force the global economy into a recession, triggering a new wave of risk-aversion trading and reviving demand for the safe-haven gold price.
• Investors increased their bets that a tariff-induced US economic slowdown would prompt the Federal Reserve to resume its rate-cutting cycle shortly. The CME Group’s FedWatch Tool indicates that traders are pricing in a more than 60% possibility that the Fed will decrease borrowing costs in May. Furthermore, the US central bank is predicted to provide five rate cuts by 2025.

Technical Triggers

• The gold active June contract has significant support at $3000 (~Rs 87000). However, if prices remain below $3000, they may fall below $2900 (~Rs 84500).
• Silver has excellent support at $29 (about Rs 87000). I do not believe Silver can remain below this level. Every decline below $30 (~Rs 89000) should be viewed as a buying opportunity for targets of $32 (~Rs 94000).

Support and Resistance

 

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