FED hikes rates by 25bps, but turns dovish for future

Fundamental News and Triggers

The Federal Reserve raised interest rates by 25 basis points and maintained its preference for extremely limited further rate hikes. Federal Reserve Powell also said “no” to rate cuts in 2023, citing the ongoing battle against stubborn inflation, which will continue until US inflation returns to desired levels.

As a result, the time has come for the Federal Reserve to maintain these higher rates for an extended period of time. Despite the absence of additional rate hikes, US inflation will remain under pressure as US banks tighten credit conditions for businesses and households to protect themselves from delinquency.

This monetary stance is considered to be a little dovish and positive for Gold and Silver. Therefore, Gold and silver will continue its bull run, if there is more news in banking crisis emerging in near future.


Technical Triggers

Gold prices has seen very volatile moves, with prices rising 10% in 10 days, then falling more than 3% from highs. Now after FED rate hike, prices are expected to consolidate at these levels for a while.

Silver has underperformed more than Gold, so its bull run is expected to continue. The next target for Silver is Rs 71000 in short-term.

Support and Resistance 




Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, 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 the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and 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 an implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. 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 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 purpose and are not to be construed as investment advices.


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