Fundamental News and Triggers
FED turns dovish, projecting only one rate cut in 2026
- Despite the Federal Reserve’s dovish estimate for interest rates in 2026, gold and silver prices are trading strongly due to safe haven demand amid geopolitical instability.
- The Federal Reserve cut rates by 25 basis points, as predicted, with a 9-3 split vote. Fed Chair Jerome Powell stated that the central bank is “well positioned” to “wait and see” how the economy unfolds, having eased policy by 75 basis points this year.
- The Summary of Economic Projections displayed a “dot-plot” in which most members said that the fed funds rate for the next year would be approximately 3.4%, meaning that policymakers may slash 25 basis points in 2026. Beyond 2028, Fed policymakers expect neutral rates to be about 3%.
- Meanwhile, geopolitical uncertainties contributed to the metal’s safe-haven appeal, notably the US interception of a sanctioned ship near Venezuela and persistent uncertainty regarding the Russia-Ukraine peace process.
Technical Triggers
- If gold sustains below $4200 (~Rs 129,000), we are likely to see more sell off upto $4100(~Rs 124,500)
- One could sell Silver below $62 (~Rs 192,000) for the target of $60.50 (~Rs 188,000).
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