Fundamental News and Triggers

• While weaker-than-expected US consumer inflation data supported speculations of Federal Reserve rate reduction, rising US-Iran tensions rekindled demand for safe-haven assets, causing gold and silver to trade near Rs 98,000 and Rs 106,000, respectively.
• Iran threatened to strike US bases if negotiations over its nuclear program failed, so the US government ordered diplomatic employees to leave Baghdad.
• A 50 basis point rate cut by the Fed before the end of the year is now priced into the markets, and traders are keeping a careful eye on the PPI data that is due later today in anticipation of more hints ahead of the US central bank’s policy meeting next week.
• In the trade arena, Trump declared on Wednesday that a framework about tariff rates had been agreed upon by American and Chinese negotiators, resulting in an agreement to restore a precarious truce in the US-China trade war.

Technical Triggers

• Gold prices are expected to edge higher towards its resistance of $3425(~Rs 99000) in the near term.
• Silver is consolidating in a range of $36.5(~Rs 106,000) and $37 (~Rs 107,000) after a sharp rally. The next target is $38 (~Rs 111,000) if this positive momentum continues.

Support and Resistance

 

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