- Precious metals have been trading well over the past few days, but yesterday saw a 1.4% decline in gold due to news that Iran is eager to begin nuclear talks with the US and is working to defuse tensions with Israel, provided Washington refrains from joining the Israeli attacks.
- Following Israel’s escalation of its attacks throughout Iran, which targeted Iran’s elite military force and state-owned media outlets, President Trump called for an emergency evacuation of Tehran.
- The retail sales and industrial output numbers for May, which are due later today, will be watched by investors to see how strong the US economy is.
- The two-day policy meeting of the Federal Reserve, which ends on Wednesday, is another topic of interest. In the upcoming months, investors are watching for clues about possible rate reduction from the Fed, which is generally expected to keep rates unchanged.
Technical Triggers
- Gold prices have given a breakout of its resistance of $3425(~Rs 99000), and now it seems we are heading towards the previous high of $3500 (~Rs 101,000) in the near term. Downside support is $3365 (~Rs 97300).
- Silver is consolidating in a range of $36.5(~Rs 106,000) and $37 (~Rs 107,000) after a sharp rally. The next target is $38 (~Rs 111,000) if this positive momentum continues.
Dr. Renisha Chainani, Head – Research at Augmont
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