Fundamental News and Triggers
Precious Metals soar to a record high, but it’s time to be cautious
- Silver reached a 14-year high of $44.77 (~Rs 135,700) and gold reached a new record high of $3824.6 (~Rs 114,179) as traders reevaluated the Federal Reserve’s stance in response to reasonable comments made by Chair Jerome Powell.
- Powell warned that it is still unclear when rates will be lowered, emphasising the Fed’s difficulty in striking a balance between indicators of labour market weakness and inflation management. He added that there is still an opportunity for a less restrictive approach because tariff-driven inflation has so far been on the lower end of projections.
- The Fed’s favourite inflation indicator, the August PCE index, and future comments by other Fed members will now be the focus of attention in search of additional clues.
- Gold also found support in the current geopolitical tensions, as NATO warned that it will take “all necessary military and non-military measures” to protect Estonian airspace after Russia recently violated it, calling it part of “a pattern of increasingly irresponsible behaviour.”
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. If gold prices sustain falls below $3780 and Silver below $44, we can see sharp sell-offs.
Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advice. The author, directors, and other employees of Augmont Enterprise Private Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above-mentioned opinions are based on information that is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors, other employees, and any affiliates of Augmont Enterprise Private Ltd. cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or implied promise, guarantee, or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or that the losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. The information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management, or investment advisory services. The reports are only for information purposes and are not to be construed as investment advice.
