Sticky Inflation pressurizes precious metals

Fundamental Q News and Triggers

The US CPI increased from the previous month’s 0.2% to 0.6% in August on rising oil prices.
Compared to the market expectation of 3.6%, annualized CPI increased by 3.7% and these sticky
inflation worries are dragging down the price of gold.

Despite the FED being on track to hold rates steady at their upcoming rate call next week, the rise in
US inflation is prompting markets to reassess the likelihood of further rate hikes from the FED in the
November meeting.

On its meeting on September 19–20, the probability of the U.S. Central Bank announcing that it
would hold interest rates steady is 97%.


Technical Triggers

The next support for the gold is Rs. 58300 and Rs. 58000 as the price has fallen below Rs. 58800 and
that begins to encounter the level of resistance.

Silver has broken important up trendline support of Rs 72000, of the uptrend which started a year
back at 52000. Prices should get supported around 70000 now and then rebound.

Support and Resistance




Disclaimer: This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, 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 the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and 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 an implied promise, guarantee or implication by or from Augmont Enterprise Private Ltd. that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. 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 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 purpose and are not to be construed as investment advices.


Share on