• A US-China trade agreement and waning expectations of rate cuts by the Federal Reserve are driving the consolidation of gold and silver prices, which are headed for a second consecutive weekly decline.
• For the second time this year, the U.S. central bank lowered interest rates by a quarter of a percentage point on Wednesday, bringing the benchmark overnight rate between 3.75% and 4.00%. However, following comments by Fed Chair Jerome Powell, traders reduced their bets that the Fed would lower rates once more at its upcoming policy meeting in December.
• President Trump reduced fentanyl duties to 10%, and Beijing promised to reduce production and resume US soybean purchases as part of a one-year trade deal on rare earths and key minerals.
• Moreover, Kazakhstan led the world’s central banks in purchasing 220 tons of gold in Q3, up 28% from the previous quarter, while Brazil made its first purchase in more than four years.

Technical Triggers 

• Gold prices are expected to consolidate in the range of $3900 (~Rs 117,500) to $4060 (~ Rs 122,000) 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.

Support and Resistance