Fundamental News and Triggers
- Traders’ increased betting on the Federal Reserve resuming interest rate cuts has caused gold and silver prices to rise. A 25-bps drop in September is all but guaranteed by the markets, with some preparing for a more significant 50-bps move.
- While indications of a slowing labour market provided room for additional easing, the most recent US CPI report allayed worries over tariff-driven inflation.
- Trump said that Russia would suffer “very severe consequences” if Putin did not put an end to the bloodshed in Ukraine. He did not provide specifics, but he has promised economic sanctions in the past if the Alaska negotiations do not succeed.
Technical Triggers
- After achieving the target of $3500 (~Rs 102,000), gold prices have retraced below $3400(~Rs 100,200) level. Prices are expected to consolidate for a while with a bullish bias towards $3450 (~Rs 101,000)
- After achieving the target of $38.5 (~Rs 115,000), Silver prices have retraced to $37.5 (~Rs 113,000). Next support is $37(~Rs 111,000), while upside prices are expected to touch $39 (~Rs 115,000) again, if positive momentum continues.
Support and Resistance
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