• Gold and Silver reversed their gains and continued their downward trajectory as traders reduced their bets on additional rate cuts in the US.
  • Following Wednesday’s anticipated quarter-point cut, Fed Chair Jerome Powell played down the possibility of a second cut in December, pointing to policymaker disagreements and limited federal data due to the government shutdown.
  • Prior to the FOMC’s decision, markets had almost complete expectations of another rate cut this year, but now they assign less than 70% possibility.
  • Investors are keeping an eye on these US-China trade discussions. As Presidents Donald Trump and Xi Jinping meet in South Korea, they are expected to finalize a trade deal, which would signify a halt to the protracted trade conflict and lower demand for safe-haven assets.

Technical Triggers

  • First target achieved in Gold at $3960 (~Rs 119,000), prices could consolidate here and then fall to $3850 (~Rs 117,000).
  • First target achieved in Silver at $46 (~Rs 140,000), prices could consolidate here and then fall to 45(~Rs 136,500).

Dr.Renisha Chainani, Head- Research, Augmont