Demand and Supply – Gold and silver surged over 3% to their highest levels in more than two and a half months, after a surprise liquidity support announcement from the US Treasury knocked down bond yields and the dollar ahead of the release of the Federal Reserve’s July meeting minutes.    

Bond Buying – The government said it would at least double the size of its liquidity-support buyback operations, covering securities with maturities ranging from 10 to 30 years. Secretary Bessent also called for the Fed to raise its FIMA facility past the $60 billion threshold, a move that would let Japan access dollar liquidity without having to sell Treasuries.

Macro-Economic Signals – Minutes from the Federal Reserve’s latest policy meeting, released Wednesday, showed deepening concern over inflation, with “several” policymakers appearing ready to raise interest rates and “many” saying a hike in borrowing costs would be needed if inflation fails to decline toward the central bank’s 2% target.

Technical Triggers    

Gold has broken out of its $4,340–$4,440 range (~Rs 153,000-156,000) and reached its $4,500 target (~Rs 158,500), with $4,600 (~Rs 162,000) now next in sight.

Silver has broken sustainably above its $66 double top and is now pointing toward $70-71 (~Rs 250,000-255,000).

Dr.Renisha Chainani, Head- Research, Augmont