Fundamental News and Triggers
Gold corrects 12% and Silver 15% in a week
- After setting a record high of $4398 last week, gold has dropped more than 12% to $3901, while silver has dropped around 15%. This seven-day correction has put an end to one of the longest bull runs in the history of the precious metal.
- With markets already factoring in another rate cut in December, traders are waiting for Fed Chair Jerome Powell to give them clues about the direction of monetary policy going forward.
- Investors, however, kept an eye on developments on a possible trade deal between the US and China that would further reduce demand for safe havens.
- A framework deal between Chinese President Xi Jinping and US President Donald Trump is anticipated to be finalised. The pact aims to loosen China’s limitations on rare earth shipments and stop more US tariff rises.
Technical Triggers
- First target achieved in Gold at $3960 (~Rs 119,000), prices could consolidate here and then fall to $3850 (~Rs 117,000).
- First target achieved in Silver at $46 (~Rs 140,000), prices could consolidate here and then fall to 45(~Rs 136,500).
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