Fundamental News and Triggers
- Amid worries about the independence of the Federal Reserve following President Trump’s threats to fire Fed Governor Lisa Cook, gold prices remained close to their two-week high due to their safety appeal.
- At the Fed’s policy meeting next month, markets are expecting a 25 basis point rate cut, which is more than 88% likely, according to the CME FedWatch Tool.
- Markets seem to be confident that a new wave of U.S. tariffs might weaken global strength, making trade policy another crucial factor for gold. An additional factor supporting gold’s safe-haven bid could be ongoing geopolitical danger, such as Ukraine’s increased attacks on Russian energy infrastructure.
Technical Triggers
- Gold Oct Futures are expected to continue their upside momentum towards $3485 (~Rs 102,500), if it sustains above $3445 (~Rs 101,500).
- As Silver Sep Futures has broken its range and sustained above $38.80 (~Rs 116,000), upside momentum can swing prices towards a new high of $40 (~Rs 120,000) this week.
Support and Resistance
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