Fundamental News and Triggers

• In anticipation of a 25-bps rate cut on Wednesday, gold and silver investors await the Fed’s interest rate decision and economic forecasts. With Trump’s policies potentially causing inflation, the market makes predictions about the Fed’s future monetary policy. Investors are placing bets on a 100-bps rate cut by the Fed in 2025.
• Additionally, Central Bank Buying is helping the bullion prices to drop below $2600. China’s central bank resumed gold purchases in November after a six-month break, and the Asian giant is expected to continue to increase its gold reserves ahead of Trump’s trade wars. China’s central bank has not purchased gold since April, hoping to increase its reserves at lower prices and waiting for a strong pullback. Trump’s hawkish stance on China has now triggered another round of gold purchases from the PBOC, which is expected to last many months.

 

Technical Triggers

• Gold is pausing this rally and is likely to get supported by around Rs 76900.
• Silver prices were not able to sustain above the resistance of $32.30(Rs 96500) and hence corrected. The next level to watch for is $30 (Rs 89000-89500) on the downside for a few days now.

 

Support and Resistance

 

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