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 Below the Quote on Gold by Mr. Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution

“At the time of writing this piece, U.S. gold futures are trading around $2,660.00. This marks the fourth day and a one week high , when gold has recovered from near our support levels of around 2500 USD. The sudden spike of conflict in the Russia Ukraine is most likely behind this move. Ukraine fired a series of British Storm Shadow cruise missiles into Russia on Wednesday, marking the latest use of Western weapons on Russian targets, just a day after U.S. missiles were used. The United States also vetoed a U.N. Security Council resolution calling for a ceasefire in Gaza, adding more uncertainty in that geography. Gold, which is considered a hedge against inflation, also will benefit from expectations that US President-elect Donald Trump's proposed tariffs could spur inflationary. However , worries that Trump's debt-funded tax cuts would lead to larger budget deficits remain supportive of elevated US Treasury bond yields which implies that Gold gains may be capped. From a technical perspective, a 50% retracement level of around $2,660 area may act as a resistance , above which Gold prices could sharply accelerate again. A break of 2550 USD levels on may lead to weakness as the $2,537 area is the near term swing low.” 

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