• A day after gold broke over the critical $4000 mark to reach a record high due to geopolitical and economic uncertainty and expectations of further U.S. interest rate reduction, investors booked profits, which caused gold to ease a bit.
  • The first part of a peace proposal between Israel and Hamas has been agreed upon by President Donald Trump, possibly bringing an end to the two-year conflict and releasing captives. This agreement has been verified by mediator Qatar, Israeli officials, and Hamas.
  • Powell is scheduled to make introductory remarks in a pre-recorded video at the Federal Reserve Board-hosted Community Bank Conference in Washington, DC, amid a data-poor US docket.
  • Powell’s clues about the Fed’s interest rate strategy in the face of the impending shutdown could cause a big spike in the price of gold denominated in US dollars.

Technical Triggers

  • As the bull run continues, the gold rally, which has reached $4081 (~Rs 123,450), can show more upward spikes towards $4150(~Rs 125,000), but one needs to be very cautious at this level. On the other hand, if Gold falls below $3950 (~Rs 120,000), we can say, top has been made, and a correction will follow.
  • Silver is on the way to touch $50(~Rs 150,000), as the bull run continues. $47(~Rs 145,000) is very strong support. If prices sustain below this level, we could see more correction or profit booking.

Dr.Renisha Chainani, Head- Research, Augmont