• As market risks have escalated, such as inflationary worries, mounting public debt, and weakening U.S. growth, gold prices have reached all-time highs.
  • Exchange-traded fund flows, especially in Asia, have been a swing factor for gold prices. Further price increases may be supported by indications that the flow momentum is increasing.
  • As the Middle East tensions erupted, Poland claimed to have shot down Russian drones that had violated its airspace during a major attack in western Ukraine, and US President Donald Trump urged the EU to impose tariffs of up to 100% on China and India to pressure Russia over the war in Ukraine. Geopolitical risks also supported demand for safe-haven assets.

Technical Triggers

After achieving the target of $3700 (~Rs 110,000) in gold, we can see some profit-booking up to $3600 (~Rs 108,000), if prices fall below $3655 (~Rs 108,800). Meanwhile, if the uptrend continues above $3700 (~Rs 110,000), the next target would be $3800 (~Rs 113,500).

Silver Nov Future prices have been consolidating in the range of $41 (~Rs 123,000) and $42 (~Rs 126,000) for the past few days. Either side – breakout or breakdown will make a 2-3% sharp move.

Dr.Renisha Chainani, Head- Research, Augmont