Fundamental News and Triggers
Gold and Silver defy gravity to continue bull run.
- Gold and Silver market is defying gravity and rising to record highs every day. Gold rose to a fresh record high of $3895(~Rs 117,500) and Silver to $47.35 (~Rs 144,200), in the face of growing fears of another Federal Reserve rate decrease and an impending US government shutdown.
- There is a chance of a shutdown when the current funding ends at midnight on Tuesday, as negotiations between President Donald Trump and congressional leaders on Monday concluded without an agreement on short-term funding.
- In the event that no deal is reached, a shutdown would start on Wednesday, which might cause important economic statistics, such as the September nonfarm payrolls report, to be delayed.
- On top of market anxiety, new U.S. tariffs on patented medications, heavy vehicles, and other goods are set to go into force on Wednesday.
- Unless a significant, unforeseen event happens, such as the Fed shifting its position, the gold bulls are now in control, and the metal’s path of least resistance remains upward.
Technical Triggers
- As Gold continues its uptrend, next resistance is $3900 (~Rs 118,000) and $3950 (120,000). If prices rebound and fall below $3850(~Rs 116,000), then we can see profitbooking.
- Silver prices are taking a breathe before rising higher. Resistance is $47.35 (~Rs 144,100) and Support is $46.75(~Rs 142,200). Either side break out or break down will 2-3% move.
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