Fundamental News and Triggers

• Gold price broke the important support of $2600 and Silver almost touched $30.20 on stronger Dollar and US treasury yields on the expectation of slower rate cuts in the Trump administration.
• Trump’s plan to strike tariffs on imports, slash taxes, and deport millions of illegal immigrants is expected to raise costs in the United States and drive up inflation. The US Federal Reserve will likely halt interest rate decreases to combat inflation.
• According to the CME FedWatch tool, market-based indicators now predict a 31% chance that the Fed will keep interest rates constant at their December meeting, down from a 100% chance of at least a quarter per cent drop.
• Gold is declining because of the competition from alternative assets, like Bitcoin, which is reaching new all-time highs in the $90,000s due to predictions of laxer crypto regulation under the Trump administration equities are increasing as investors hope that reduced corporate taxes and looser regulations would improve business earnings.

 

Technical Triggers

• As suggested, Gold has achieved the first target of $2620 (~Rs 75000) and Silver has achieved the first target of $31 (~Rs 90,200). Prices could recover a bit today, but more weakness is expected up to $2565 in Gold and $29.80 in Silver in the next few days.

 

Support and Resistance

 

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