Fundamental News and Triggers

Precious metals rebound on safe-haven demand.

• Gold and silver rebounded due to safe-haven demand, while investors awaited the minutes of the Federal Reserve’s most recent policy meeting and the U.S. jobs report, which could provide additional insight into the central bank’s interest rate trajectory.
• Investors are currently waiting for the September non-farm payrolls report, which will be issued on Thursday after being postponed because of the recent U.S. government shutdown, and the minutes from the Fed’s most recent meeting, which are scheduled to be released later in the day.
• Expectations for additional rate reduction from the Federal Reserve were also bolstered by signs of a worsening US job market. Fed Governor Christopher Waller said that companies are talking more about layoffs as they get ready for softer demand and possible productivity improvements from artificial intelligence.
• The likelihood of a 25 bps cut in December is now just about 47% priced into the markets, compared to over 90% a month ago.

 

Technical Triggers 

• Gold has broken an important support of $4050; the next target support is $3950 (~Rs 120,000).
• Silver has broken the important support of $50, the next target support level is around $48.5(~Rs 150,000) and $47(~Rs 145,000).

 

 

 

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