• The minutes of the most recent Fed meeting revealed that policymakers are still worried about the labor market and inflation, with the majority of voting members believing it is too early to cut interest rates. As a result, gold is stabilizing around $3400.
  • An 85% possibility of a rate drop in September is now factored in by traders. The Federal Reserve’s cautious approach may reduce expectations for strong rate cuts throughout the remainder of the year, even though the rate cut in September is virtually guaranteed.
  • When Jerome Powell speaks at the annual central bank symposium in Jackson Hole, Wyoming, on Friday, markets will receive more hints about the monetary policy of the Federal Reserve.

Technical Triggers

  • Gold seems to continue its downward trajectory after sustaining below $3400. Next support is $3340 (~Rs 98500), while $3445 (~Rs 100,500) remains the resistance.
  • Silver prices are expected to consolidate in a range of $37(~Rs 110,500) to $39(~Rs 115,000).

Dr.Renisha Chainani, Head- Research, Augmont