- Precious metals have reversed as support from growing geopolitical tensions in the Middle East is offset by a stronger dollar overall and the possibility of fewer interest rate reductions from the US.
- Israel struck Iran’s nuclear sites on Thursday, while Iran attacked Israel with missiles and drones, including attacking an Israeli hospital overnight, escalating the Middle East crisis. Neither party has shown a plan to leave.
- President Donald Trump will put pressure on Tehran to engage in negotiations as he decides in the next two weeks whether the United States will intervene in the Israel-Iran air confrontation.
- Meanwhile, Trump restated his demands that interest rates be lowered by the Federal Reserve, stating that they should be 250bps lower.
Technical Triggers
- Gold prices are consolidating around record-high levels in the range of $3360(~Rs 99000) and $3475 (~Rs 101,000).
- Silver prices have retraced from its high, next support is $35.50 (~Rs 105,300). Prices should sustain this support for the bull trend to continue. If this support is broken, the next downside level is $34.50 (~Rs 104,000).
Dr. Renisha Chainani, Head – Research at Augmont
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