Fundamental News and Triggers
Powell raises doubt about easing at the next meeting
- Gold and Silver reversed their gains and continued their downward trajectory as traders reduced their bets on additional rate cuts in the US.
- Following Wednesday’s anticipated quarter-point cut, Fed Chair Jerome Powell played down the possibility of a second cut in December, pointing to policymaker disagreements and limited federal data due to the government shutdown.
- Prior to the FOMC’s decision, markets had almost complete expectations of another rate cut this year, but now they assign less than 70% possibility.
- Investors are keeping an eye on these US-China trade discussions. As Presidents Donald Trump and Xi Jinping meet in South Korea, they are expected to finalize a trade deal, which would signify a halt to the protracted trade conflict and lower demand for safe-haven assets.
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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