• Silver reached a 14-year high of $44.77 (~Rs 135,700) and gold reached a new record high of $3824.6 (~Rs 114,179) as traders reevaluated the Federal Reserve’s stance in response to reasonable comments made by Chair Jerome Powell.
  • Powell warned that it is still unclear when rates will be lowered, emphasising the Fed’s difficulty in striking a balance between indicators of labour market weakness and inflation management. He added that there is still an opportunity for a less restrictive approach because tariff-driven inflation has so far been on the lower end of projections.
  • The Fed’s favourite inflation indicator, the August PCE index, and future comments by other Fed members will now be the focus of attention in search of additional clues.
  • Gold also found support in the current geopolitical tensions, as NATO warned that it will take “all necessary military and non-military measures” to protect Estonian airspace after Russia recently violated it, calling it part of “a pattern of increasingly irresponsible behaviour.”

Technical Triggers

  • All targets achieved in Gold at $3800 and Silver at Rs 135,000. Now it’s time to book profits and stay cautious. This rally seems overbought and overdone. We can expect a price retracement anytime soon. If gold prices sustain falls below $3780 and Silver below $44, we can see sharp sell-offs.

Dr.Renisha Chainani, Head- Research, Augmont