Fundamental News and Triggers
Precious metals steady before the FED meeting
- Gold and silver prices are stable, supported by risk aversion and anticipation of a 25bp rate drop by the Federal Reserve at its meeting on December 9-10.
- With the Fed generally expected to cut interest rates by 25 basis points, traders will be watching the latest economic predictions (the Dot plot) and comments from Chair Jerome Powell for signals on the central bank’s plans for 2026 and beyond.
- Current market pricing indicates a 90% chance of such a move, with expectations now pointing to two additional cuts next year, down from three only a week ago.
- The market may be anticipating that the Fed may signal that, after this rate cut, there may be a halt in the first quarter of 2026 for a few months.
Technical Triggers
- Gold has started its upward journey again; the next target is $4300 (~Rs 132,000) and $4345 (~Rs 133,500) with strong support at $4200 (~Rs 129,000).
- Silver can continue its rally towards $60 (~Rs 185,500) and $62 (~Rs 191,000), with firm support at $57 (~Rs 177,000), if tight supply conditions continue.
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.
