• Gold and silver dropped from all-time highs, as investors locked in profits before the Federal Reserve’s policy decision.
  • U.S. retail sales grew more than anticipated in August, according to data released on Tuesday. However, a deteriorating job market and tariff-driven price increases could jeopardise the strength of spending going forward.
  • Markets are pricing in roughly 67 basis points of rate easing by year-end, with the Fed likely to lower rates by 25 basis points later today. Powell has been urged by U.S. President Donald Trump to implement a “bigger” rate cut.
  • The Fed’s quarterly Summary of Economic Projections, which includes the “dot plot” prognosis for rates, will also be of interest to investors.
  • This week is anticipated to see policy easing by the central banks of China and Canada, while those in Japan and the UK are likely to stand pat.

Technical Triggers

  • Gold Dec Futures seems to have topped out, and if it falls below $3710 (~Rs 109,600), then we could only see further profit booking up to $3650. But if it sustains above $3740 (~Rs 110,500), the next target would be $3800 (~Rs 113,500).

Dr.Renisha Chainani, Head- Research, Augmont