- Gold surged beyond $3400 (around Rs 100,000), hitting its highest level as investors sought refuge from growing economic uncertainties and geopolitical concerns.
- Following Israel’s preemptive strike against Iran, which sharply increased concerns about a wider Middle East conflict, the rally was held. Israeli Defense Minister Israel Katz announced a special state of emergency and issued a warning that Israeli citizens would soon be the target of a missile and drone attack.
- President Donald Trump threatened to impose unilateral tariffs to pressure trading partners, though Treasury Secretary Scott Bessent suggested the current 90-day tariff pause could be extended.
- On the economic front, softer-than-expected US consumer and producer inflation data earlier this week increased expectations for additional Federal Reserve rate cuts this year, providing further support for non-yielding assets like gold.
Technical Triggers
- Gold prices have given a breakout of its resistance of $3425(~Rs 99000), and now it seems we are heading towards the previous high of $3500 (~Rs 101,000) in the near term.
- Silver is consolidating in a range of $36.5(~Rs 106,000) and $37 (~Rs 107,000) after a sharp rally. The next target is $38 (~Rs 111,000) if this positive momentum continues.
Dr. Renisha Chainani, Head – Research at Augmont
Leave a Reply