- Gold reached a fresh high above $3500, with the Bank of England lowering interest rates for the sixth time this year and jobless claims increasing more than anticipated this week. The United States has placed taxes on imports of one-kilogram gold bars. Investors believe a rate cut in the United States is imminent as a result of the developments.
- Imports of one-kilogram gold bars were subject to taxes in the US, with Switzerland’s recently declared 39% tariff rate being one of the highest the Trump administration has levied. The rule states that duty amounts on one-kilogram and 100-ounce gold bars are now governed by a separate customs law. Switzerland, the largest gold refining hub in the world, which exports substantial amounts of refined bullion to the United States, may be greatly impacted by the decision.
Technical Triggers
- As suggested yesterday, Gold sustained above its resistance zone of $3440-50 (~Rs 101,300-500) and follow-through buying took prices towards the next target level of $3500 (~Rs 102,200).
- Targets also achieved in Silver as prices touched its resistance level of $38.5(~Rs 115,000), taking clues from gold.
- As Gold and Silver prices have touched resistance, prices are expected to consolidate in a range today with some profit booking due to the weekend.
Dr.Renisha Chainani, Head- Research, Augmont
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