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 remain a key driver. The buildup of U.S. troops in the Middle East ahead of nuclear talks in Geneva has heightened market anxiety. Simultaneously, 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 $5,200 (~ Rs.1,61,000). This technical breakout signals renewed bullish momentum, with prices now likely targeting the next resistance zones at $5,300 (~ Rs.1,64,000) and $5,400 (~ Rs.1,67,000).
• As indicated in the previous report, silver has achieved the target of $90 (~ Rs.2,66,000). Prices are now gradually approaching the next resistance levels of $92 (~ Rs.2,72,000) and $93 (~ Rs.2,75,000).

Support and Resistance

source : AUGMONT BULLION REPORT