AUGMONT Bullion Daily Report

6 hours ago

Fundamental News and Triggers

Gold acts as a shelter to weather the storm of unpredictability.

• Gold prices hit a record high above $2850 (around Rs 82000) after the dollar declined following a report that revealed the U.S. economy grew more slowly than anticipated in the fourth quarter. The fourth quarter saw a 2.3% increase in the US GDP, which was less than the 2.5% increase that was predicted and down from the 3.1% increase in the previous quarter.

• President Donald Trump reiterated his threats to put a 25% tariff on United States goods from Canada and Mexico. Gold has seen safe-haven flows due to repeated tariff threats.

• Trump's immigration and tariff policies continue to be the main emphasis, along with their potential effects on inflation and the economy. If the inflation data today rises to the downside, it may indicate that the Fed has more leeway in its policies, which might advance hopes of a rate decrease and boost gold prices.

Technical Triggers

• As forecasted, gold prices have achieved the target of $2800 (~Rs 81000). We can see some profit booking today before prices can rise further.

• Silver prices have sustained above $31(~Rs 93000) to start their bullish momentum towards $32 (~Rs 96000).

Support and Resistance

International Gold Support level : $2790/oz

International Gold Resistance level : $2900/oz

Indian Gold Support level : Rs 81000/ 10 gm

Indian Gold Resistance level : Rs 83000/ 10 gm

International Silver Support level : $29.5/oz

International Silver Resistance level : $32/oz

Indian Silver Support level : Rs 92500/ kg

Indian Silver Resistance level : Rs 96000/ kg