Fundamental News and Triggers
Precious Metals halt its upside rally
- The surge in gold and silver has slowed as investors wait for the release of the US GDP data and the PCE price index report, which is the Fed’s favourite inflation indicator.
- Furthermore, Fed officials are still split, with some predicting two more rate cuts this year, others favouring a more measured approach, and still others calling for more aggressive easing. Chair Jerome Powell also struck a cautious tone, highlighting the challenge of striking a balance between persistent inflation and a slowing labour market.
- In addition, US new-home sales unexpectedly jumped to their highest level since early 2022 in August, allaying concerns about a slowing economy and making it more difficult to predict further rate reduction.
- Geopolitical tensions continued to bolster gold’s appeal as a safe haven, with President Trump stating that Ukraine might retake all of Russia’s land and NATO telling Russia that it would employ “all necessary military and non-military measures” to defend itself.
Technical Triggers
- All targets achieved in Gold at $3800 and Silver at Rs 135,000. Now it’s time to book profits and stay cautious. This rally seems overbought and overdone. We can expect a price retracement anytime soon. Silver must break below $44 to show a correction, while Gold has maintained below $3780, indicating further profit-booking below $3700.
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