Fundamental News and Triggers
Precious metals remain elevated on hopes that US data will boost FED rate cut bets.
- The dollar’s decline and the uncertainty surrounding the backlog of official data following the US government’s 43-day reopening have helped gold prices rise 4.8% so far this week.
- Some of these releases might be lost completely, but others might show up soon, which would raise concerns about the nation’s economic future.
- The U.S. government has opened, though, and as a result of all these concerns about inflation and the slowdown, there was some decline in silver prices as expectations changed to suggest that the Fed might not be ready to cut rates aggressively.
- Markets have lowered their estimates for a December Fed rate cut, giving a 25 basis point cut a 50% chance, down from over 95% a month ago. Meanwhile, betting on cuts in 2026 has not altered.
Technical Triggers
- Gold continues its upside, crossing $4200, with the next target resistance at $4300 (~Rs 130,000), with support at $4100 (~Rs 123,500)
- Silver has touched record high prices, crossing $54 (~Rs 164,000). Now the next target resistance lies at $55(~Rs 168,500) and $56 (~Rs 172,000) and support at $52 (~Rs 160,500)
Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advice. The author, directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above-mentioned opinions are based on information that is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors, other employees, and any affiliates of Augmont Enterprise Private Ltd. cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee, or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or that the losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. The information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management, or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.
