- A truce agreement between Israel and Iran reduced the metal’s appeal as a safe-haven, causing gold to drop to about $3350. President Donald Trump declared late Monday that both countries had reached an agreement on a full ceasefire, with Iran initiating the truce right away and Israel following 12 hours later.
- Trump’s remarks followed Iran’s symbolic reprisal against a US military base in Qatar, of which no injuries were recorded.
- In the meantime, investors are keeping a tight eye on Federal Reserve Chair Jerome Powell, who will appear before the US Congress on Tuesday and Wednesday, for any clues about the direction of interest rates going forward.
Technical Triggers
- This week, gold prices are anticipated to fluctuate between $3320 (~Rs 97000) and $3420 (~Rs 100,000); a breakout or a breakdown will provide a 2-3% rise or fall.
- Silver prices have retraced from their high; the 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). On the upside, prices can rise to $36.75 (~Rs 107,500).
Dr. Renisha Chainani, Head- Research, Augmont – Gold for all
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