Fundamental News and Triggers
Precious Metal takes a breather as focus turns to Inflation data
- Gold prices have risen 40% this year, above $3700 (~Rs 110,000), after a 27% surge in 2024, thanks to dovish monetary policy, a soft dollar, robust central bank stockpiling, and increased global concern.
- In the 12 months ending in March, the U.S. economy probably created 911,000 fewer jobs than previously thought, the government said Tuesday, indicating that employment creation was already faltering prior to the strong import tariffs imposed by U.S. President Donald Trump.
- Additionally, last week’s release of U.S. nonfarm payroll statistics indicated deteriorating labour market conditions, which further cemented the argument for a rate cut by the Fed next week.
- For additional clues on the Federal Reserve’s interest rate trajectory, attention will now turn to U.S. producer price inflation data, which is scheduled for later today, and consumer price inflation data on Thursday.
Technical Triggers
- Gold Oct Futures has achieved the target of $3700 (~Rs 110,000). We can see some profit-booking up $3600(~Rs 108,000), if prices fall below $3655 (~Rs 108,800). Meanwhile, if the uptrend continues above $3700(~Rs 110,000), the next target would be $3800 (~Rs 113,500).
- Silver Nov Future prices have been consolidating in the range of $41(~Rs 123,000) and $42 (~Rs 126,000) for the past few days. Either side – breakout or breakdown will make a 2-3% sharp move.
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