• Prices of gold and silver fell as the US dollar appreciated and investors profited from the announcement that Israel and Hamas had reached an agreement on the first stage of a ceasefire plan.
  • Federal Reserve officials agreed that the dangers to the U.S. labour market were significant enough to justify a rate cut, but they remained cautious due to persistent inflation, according to minutes of the U.S. central bank’s September meeting that were made public on Wednesday.
  • Due to political unrest in France and Japan, as well as the ongoing government shutdown in the United States, markets have struggled this week. As a result, investors have turned to gold for safety.

Technical Triggers

  • As the gold prices fell more than $100, volatility is very high. If gold futures sustain below yesterday’s low of $3958 (~Rs 120,200), we can say, top has been made, and a correction will follow for at least 4-5%.
  • Silver achieved the target of $50 (~Rs 153,000). And then prices retreated by almost Rs 9000 from their high in volatile momentum. Yesterday’s low of $46.90 (~Rs 145,000) is a very strong support. If Silver futures sustain below this level, we could see more correction or profit booking by at least 4-5%.

Dr.Renisha Chainani, Head- Research, Augmont