• Gold and silver prices are attempting to establish a base before the next upleg rise, following confirmation of supporting factors, including massive layoffs and the US government shutdown.
  • In October, US challenger job losses tripled, marking the biggest increase in more than 20 years, as businesses cited a decline in customer demand. October saw 153,074 job cutbacks, up 183% from September and 175% from the same month the previous year. It has been the worst year for layoffs since 2009 and the worst amount for any October since 2003.
  • A total of 1.1 million layoffs have been declared by companies this year, which is the most since the COVID-19 pandemic year of 2020 and a 65% increase from the previous year. The greatest number for a fourth-quarter month since 2008 was recorded in October.
  • As the U.S. government enters its longest-ever shutdown, investors will be watching for any economic data from private sources while official data remains missing.

Technical Triggers

  • Gold prices are expected to consolidate in the range of $3900 (~Rs 117,500) to $4060 (~ Rs 122,500) for the next few days, so buy on dips and sell on rallies.
  • Silver prices are expected to consolidate in the range of 45.5(~Rs 140,000) and $49 (~Rs 150,000) for the next few days, so buy on dips and sell on rallies.

Dr.Renisha Chainani, Head- Research, Augmont