• Gold has reached new all-time highs above $3695 (~Rs 109,500) to start the week on a strong bullish note. The action builds on last week’s surge as investors become more confident that the Fed would lower interest rates at its September monetary policy meeting—a move that markets now regard as almost certain after a run of poor US job market data.
  • Globally, ETFs added 53 tons of gold in August, worth roughly $5.5 billion. AUM by ETFs closed at a month-end high once more, and it is currently only 6% below the peak that was attained during the epidemic.
  • In August, the People’s Bank of China continued to diversify its reserves away from the US dollar by increasing its gold holdings for the tenth consecutive month.
  • During the weekend, the Trump administration took a step to exempt gold and some other metals from its country-based tariffs.

Technical Triggers  

  • Gold seems to continue its run-up towards its record high levels again. Next target is $3700 (~Rs 110,000) and $3800 (~Rs 113,000).
  • Silver continues its upward trajectory for the next target of $42 (~Rs 126,000) and $43 (~Rs 130,000).

Dr.Renisha Chainani, Head- Research, Augmont