Fundamental News and Triggers
- Amid increased political unpredictability following President Donald Trump’s dismissal of Federal Reserve Governor Lisa Cook, gold and silver are continuing their upward trajectory. The action increased doubts about the Fed’s independence and capacity to set monetary policy without interference from politics.
- Fed Chair Jerome Powell, meanwhile, hinted at a potential rate decrease in September last Friday, pointing to mounting labour market vulnerabilities while concurrently emphasising that no decision has been made and that inflation is still a worry. At the moment, markets are estimating an 83% chance of a 25 basis point rate cut next month.
- On the industrial side, robust data from China’s solar sector supported the market for silver. According to recent data, strong demand from India was a major factor in the more than 70% increase in Chinese solar cell shipments in the first half of the year.
Technical Triggers
- Gold Oct Futures are expected to continue their upside momentum towards $3500 (~Rs 102,500), if it sustains above $3425 (~Rs 101,000).
- As Silver has broken its range and sustained above $38.80 (~Rs 116,000), upside momentum can swing prices towards a new high of $40 (~Rs 120,000) this week.
Support and Resistance
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