Fundamental News and Triggers

Precious metals are dancing to the tunes of rate cut bets.

• Gold and silver prices rebounded after dovish remarks from Fed governors rekindled hopes of a U.S. rate cut in December, reaching their highest level in over a week despite a strong dollar.
• Fed Governor Christopher Waller yesterday that the employment market is bad enough to justify another quarter-point rate decrease in December, but further action would rely on an impending flood of data that has been delayed by the government shutdown.
• Waller’s remarks follow New York Fed President John Williams’ Friday prediction that U.S. interest rates could decline “in the near term.” According to the CME FedWatch Tool, investors are now projecting an 81% chance of a Fed rate drop in December, up from 40% last week.
• Investor attention now shifts to September retail sales and PPI data, which are due later today, as well as jobless claims on Wednesday. These data are anticipated to give investors a better understanding of the US economy’s condition and the future course of Fed interest rates.

Technical Triggers 

• Gold has been trading in the range of $4000 (~Rs 121,000) and $4200 (~Rs 127,000). Buy on dips around support and sell on rallies around resistance.
• Silver has been trading in the range of $49 (~Rs 150,000) to $53 (~Rs 160,000). Buy on dips around support and sell on rallies around resistance.

 

 

 

 

 

 

 

 

 

 

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