However, he urged caution on gold and silver, which may face short-term corrections after recent gains. “These gains might not hold,” Narne said, adding that he expects some profit-taking toward the end of the trading day.
He believes the current market setup continues to support industrial metals, especially with growing expectations of a US rate cut in the near term.
While the US Federal Reserve is likely to keep rates unchanged in the upcoming meeting, Narne believes a cut is possible in the next one, especially with inflation data showing signs of softening. “The rhetoric is rising… they might be forced to do a rate cut in the next meeting,” he said.
This outlook has led to a dip in the dollar index, which is supporting riskier assets like equities and industrial metals. Narne explained that lower interest rates tend to weaken the dollar, making commodities priced in dollars more attractive.
He also stated that early-stage progress in US-China trade talks has improved sentiment, though the situation remains delicate. “It’s a start… but if the presidents don’t approve the framework, the market could go back into a tailspin,” he warned.
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For the entire interview, watch the accompanying video