Fundamental News and Triggers

• The September FOMC meeting minutes showed that most members were in favour of a 50-bps rate cut because they believed inflation would eventually approach the 2% target.
• The US Dollar rose to a nearly two-month high as a result of the widespread agreement that the excessive rate decrease would not bind the Federal Reserve to any particular pace for any reductions.
• Traders are now pricing in a 20% possibility that the Fed will maintain rates in November and a higher likelihood that it would only cut borrowing costs by 25 basis points in November.
• Despite Israeli Defense Minister Yoav Gallant’s assurance that an attack against Iran would be “lethal, precise, and surprising,” investors continued to be cautious about the mounting tensions between the two countries.

 

Technical Triggers

• Gold has broken important support of $2650 (~Rs 75400) and is aiming for $2600 (~Rs 73500) next.
• Silver has broken the important support of $31(~Rs 91500), aiming for $30 (~Rs 87500) next.

 

Support and Resistance

 

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