• Safe-haven demand – Gold and silver prices extended their gains, hovering near a four-week high as safe-haven demand strengthened amid rising geopolitical tensions and continued uncertainty around U.S. trade policy. Market volatility remains elevated after a 10% global tariff came into effect, while the White House signaled plans to formally raise the rate to 15%, keeping investors cautious.
  • Geopolitical Tensions – Geopolitical risks also remain a key driver. The buildup of U.S. troops in the Middle East ahead of nuclear talks in Geneva has heightened market anxiety. At the same time, Washington intensified pressure on Iran by imposing fresh sanctions targeting entities linked to oil and weapons exports, reinforcing the risk premium in precious metals.
  • Economic Data – Recent data showed U.S. GDP growth slowing sharply to a 1.4% annualized pace in the fourth quarter, well below expectations. Slower growth typically supports gold, as it increases the likelihood of Federal Reserve rate cuts. Investors are now closely watching weekly jobless claims data for further signals on the Fed’s policy direction.

Technical Triggers   

  • As indicated in the previous report, gold has achieved the target of $5200 (~ ₹1,61,000). This technical breakout indicates renewed bullish momentum, with prices now likely targeting the next resistance zones at $5,300 (~ ₹1,64,000) and $5,400 (~ ₹1,67,000).
  • As indicated in the previous report, silver has achieved the target of $90 (~ ₹2,66,000). Prices are now gradually approaching the next resistance level of $92 (~Rs 272,000) and $93 (~ ₹2,75,000).

Dr.Renisha Chainani, Head- Research, Augmont