- President Donald Trump’s announcement on Monday that gold will not be subject to tariffs allayed concerns about a dramatic rise in the price of importing the metal, causing prices to drop below $3400.
- According to a previous US Customs rule, imported 1-kilogram and 100-ounce gold bars from Switzerland would have been subject to a 39% tariff, which would have also applied to bars from any other nation under the current US tariff rates.
- Separately, the president issued an executive order that gives the US a further ninety days to lift its high tariffs on Chinese imports.
- For hints on the Federal Reserve’s interest rate trajectory, investors are now turning their attention to this week’s major US economic data releases, such as the CPI, PPI, and retail sales.
Technical Triggers
- After achieving the target of $3500 (~Rs 102,000), gold prices have retraced below $3400(~Rs 100,200) level. Prices are expected to consolidate for a while with a bearish bias towards $3350 (~Rs 98500)
- After achieving the target of $38.5 (~Rs 115,000), Silver prices have retraced to $37.5 (~Rs 113,000). Next support is $37(~Rs 111,000)
Dr.Renisha Chainani, Head- Research, Augmont
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