The Federal Reserve, as expected, lowered its benchmark policy rate for the third time since September and signalled that rate reduction would halt, causing a sell-off in the precious metals market.

The US economic calendar includes the release of housing market data—Building Permits and Housing Starts today. The attention, however, will remain on the key FOMC monetary policy decision.

In anticipation of a 25-bps rate cut on Wednesday, gold and silver investors await the Fed’s interest rate decision and economic forecasts.

Gold and silver struggle to hold gains, but geopolitical risks, trade war fears, and Fed rate cut bets continue to support the prices.

Following the announcement of US inflation data yesterday, gold prices continued their upward trajectory. As prices continue their uptrend, the next level to watch for is the previous high of $2800 (Rs 80000).

In Syria, various rebel factions are beginning negotiations to form a government while foreign powers like Israel and Turkey take positions. The increasing uncertainty in an already volatile region supports demand for the safe-haven metal.

The price of precious metals recovered well from eight-day lows as geopolitical tensions in the Middle East countered the recent increase in the US dollar and the yields on US Treasury bonds throughout the curve.

The price of gold fluctuates as rising US Treasury yields reduce its allure in the face of erratic Fed policy. Given the South Korean political unrest, the Syrian civil war, and tensions between Russia and Ukraine, the decline in the price of gold and silver is anticipated to continue to be well-supported.

Sentiment remains positive in India as RBI increased its gold holdings by 27 tonnes in October, bringing its total holdings to 77 tonnes so far this year. India’s net buying activity for the year has increased fivefold compared to 2023. RBI is the world’s largest buyer of gold in 2024; following that are the countries Turkey and Poland.

Recent political uncertainty in South Korea and unrest in Syria are helping to support gold. Gold prices are expected to be rangebound and consolidate between $2600 (~Rs 75000) and $2200 (~Rs 77600) for the next few days with positive bias.

As manufacturing activity increases, the U.S. dollar’s strong momentum may support the gold market, which is still struggling. Gold is showing very volatile moves with support at $2600. Prices are expected to trade between $2600 (~Rs 75000) and $2200(~Rs 77600) for the next few days.

Amid worries about a trade war and geopolitical uncertainties, the price of gold saw new bids on Thanksgiving Thursday and Black Friday. For the next few days, prices are expected to trade between $2600 (~Rs 75000) and $2700(~Rs 77000).