International News
India, UK sign historic free trade agreement FTA; gems and jewellery, leather, textiles sectors stand to gain
The United Kingdom and India signed a historic free trade agreement (FTA), boosting bilateral trade by around $34 billion annually. The FTA, signed during Prime Minister Narendra Modi’s visit to the UK, includes tariff cuts, improved mobility for professionals, and market access guarantees that together mark one of India’s most comprehensive trade pacts.
The FTA offers duty-free access to the UK’s $23 billion market, giving Indian MSMEs a strong advantage over other countries in labour-intensive sectors such as gems and jewellery, leather and footwear, textiles. India’s gems and jewellery exports to the UK are currently valued at $941 million, with jewellery alone accounting for $400 million. With the UK importing $3 billion worth of jewellery annually, India’s exports are expected to double in 2–3 years.
The deal took three years to reach and also commits to a new India-UK plan to tackle illegal migration.Opponents had warned the deal could undercut British workers due to extended social security terms, but UK Business Secretary Jonathan Reynolds said this was “completely wrong” and Indian workers on temporary secondment to the UK would get the same deal already offered to many other countries.
The trade deal is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, the officials said.
After signing the landmark deal, the two prime ministers are also expected to unveil an “UK-India Vision 2035” to take their partnership to new heights in a time of rapid global change.
The UK said Indian consumers will benefit from improved access to the best British products — from soft drinks and cosmetics to cars and medical devices — as average tariffs will drop from 15 per cent to 3 per cent after the FTA kicks in.
International News
Precious Metals Bounce Back As Iran Ceasefire Hopes Rise, But Fed Rate Fears Loom: AUGMONT BULLION REPORT
Gold Remains Under Short-Term Pressure From Expectations Of Fed Tightening and A Strong Dollar. However, Investor Positioning In Gold Looks Relatively Light After Months Of ETF Outflows,
Price Movement – Gold has bounced back from its key support levels near $3960, and Silver has recovered from $55, after an Iranian official reportedly received a proposal for a 10-day ceasefire. The continuing US-Iran standoff has kept investors worried about energy-driven inflation and the possibility of further rate hikes. Markets are now pricing in an 83% chance of a US rate hike in December, up sharply from 73% just a week earlier, based on the CME FedWatch tool.
Geopolitical Tensions – Despite the Houthis announcing fresh military action, both Tehran and Washington appear keen to restart talks and stop the escalating attacks that have nearly destroyed a fragile interim agreement reached last month. A senior Iranian official told Reuters on Monday that mediators had proposed a 10-day ceasefire, aimed at rescuing the interim deal and eventually leading to a lasting peace agreement.
Macro-Economic Signals – Gold remains under short-term pressure from expectations of Fed tightening and a strong dollar. However, investor positioning in gold looks relatively light after months of ETF outflows, meaning further price drops may be limited. Strong physical demand, especially from China, along with continued central bank buying, is providing solid support to the gold market.
Technical Triggers
If Gold fails to hold above $4,000 (~Rs 1,41,000), it could slide further to $3,900 (~Rs 1,38,000). But if it manages to stay above $4,200, a fresh rally could take it toward $4,500 (~Rs 1,55,000).
For Silver, a strong move above $63 (~Rs 2,35,000) could push prices toward $70–71 (~Rs 2,51,000–2,55,000). On the other hand, a fall below $55 (~Rs 2,14,000) may drag it down to $50 (~Rs 2,00,000).
Support and Resistance
| International Gold Support Level International Gold Resistance Level Domestic Gold Support Level Domestic Gold Resistance Level | : $3900/oz : $4160/oz : Rs 137,000/10 gm : Rs 147,000/10 gm |
| International Silver Support Level International Silver Resistance Level Domestic Silver Support Level Domestic Silver Resistance Level | : $55/oz : $63/oz : Rs 214,000/kg : Rs 235,000/kg |
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