Safe-haven demand: Precious metals found support as safe-haven demand strengthened amid rising geopolitical tensions. The United States increased its military presence in the Middle East, heightening concerns over a potential conflict with Iran. At the same time, Ukraine–Russia peace talks ended without any meaningful breakthrough, reinforcing global uncertainty and supporting demand for gold and silver.

Geopolitical Tensions:U.S. President Donald Trump warned that Iran must reach an agreement on its nuclear program within 10 days or face consequences, further intensifying geopolitical risks. This continued fragility has embedded a risk premium in global markets, underpinning precious metals.

Economic Data:On the economic front, minutes from the Federal Reserve’s January 27–28 meeting revealed a divided stance among policymakers. Some members signaled openness to rate hikes if inflation remains elevated, while others favored rate cuts should price pressures moderate. This policy uncertainty is likely to keep volatility elevated in the precious metals market.

Technical Triggers

As indicated in the previous report, gold has rebounded from its key support level near $4,850 (~ Rs.1,50,000) and is now gradually advancing toward the resistance zone around $5,100 (~ Rs.1,60,000). One may consider a buy-on-dips strategy near support levels and book profits on rallies closer to resistance, until a decisive breakout occurs.

Silver has bounced from its support zone of $70–$90 (~ Rs.2,25,000). Prices are now heading toward the resistance levels of $85 (~ Rs.2,68,000) and $90 (~ Rs.2,85,000). Given the volatility in silver, a buy-on-dips and sell-on-rallies approach remains appropriate within the current trading range

Support and Resistance

source: AUGMONT BULLION REPORT