Fundamental News and Triggers

Precious metals subdued on strong US Jobs data.

• A better-than-expected U.S. jobs data has strengthened predictions that the Federal Reserve would not lower interest rates at its December meeting, which has caused precious metals to trade mutedly.
• The highly anticipated U.S. Labour Department report, which was postponed due to the federal government shutdown, revealed that nonfarm payrolls climbed by 119,000 in September—more than twice the projected gain of 50,000.
• The Fed lowered interest rates despite members’ warnings that doing so could jeopardise persistent inflation and erode public confidence in the US central bank, according to minutes from the Fed’s October meeting that were made public on Wednesday.
• The Cleveland Beth Hammack, the president of the Federal Reserve, cautioned on Thursday that further rate cuts at this time pose a number of economic dangers. There is a chance that asset prices will drop excessively, according to Fed Governor Lisa Cook.

 

Technical Triggers 

• Gold has been trading in the range of $4000 (~Rs 121,000) and $4150 (~Rs 125,000). Buy on dips around support and sell on rallies around resistance.
• Silver has been trading in the range of $49 (~Rs 150,000) to $53 (~Rs 160,000). Buy on dips around support and sell on rallies around resistance.

 

 

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.