Fundamental News and Triggers
Gold and Silver rebounds on bargain hunting and US partial shutdown
- Gold and silver have rebounded nearly 10% from recent lows as markets factor in the absence of key US economic data due to a partial government shutdown and renewed bargain hunting. The shutdown began after Congress failed to fund the Labor Department and other agencies, adding short-term uncertainty.
- The sharp correction—around 25% in gold and 45% in silver from recent highs—has attracted strong physical buying from investors who were waiting for meaningful price retracements to accumulate precious metals.
- Meanwhile, the US–India trade deal has supported the Indian rupee, with USD/INR appreciating toward 90.20, up nearly 1%. While tariff cuts to 18% improve trade relations, reduced uncertainty and a stronger rupee may temporarily cap domestic gold and silver prices by easing safe-haven demand and lowering import costs, despite supportive long-term fundamentals.
Technical Triggers
- Gold prices may extend the ongoing rebound toward $5,000 (~₹155,000), with strong support seen near $4,600 (~₹139,000).
- Silver is attempting to build a base and is expected to consolidate in the $72–$87 range (~₹225,000–₹270,000). A buy-on-dips and sell-on-rallies strategy is advisable within this range amid elevated volatility.
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