Gold and Silver rebound sharply on FED dovishness

Fundamental News and Triggers

  • In the FOMC meeting yesterday, the Federal Reserve decided to hold interest rates steady in December 2023, but it plans to cut rates three times in 2024. The Fed also indicated it might be willing to make more cuts in 2025 and 2026. This decision comes as inflation has eased and the economy has slowed. The Fed wants to make sure inflation falls to its 2% target without causing a recession.
  • Gold and Silver prices have rebounded sharply as the Fed’s decision to cut rates in 2024 is a sign that the central bank is concerned about the slowing economy. The Fed’s willingness to make more cuts in 2025 and 2026 suggests that the central bank is committed to keeping interest rates low until inflation is under control.

 

Technical Triggers

  • As suggested in the previous report Gold prices could consolidate around $2000 and then rebound towards $2045, the same thing has happened. The next resistance to chase is $2060.
  • As suggested in the previous report Silver prices could consolidate around $23 and then rebound towards $24, same thing has happened. The next resistance to chase is $25.

 

Support and Resistance

 

 

 

 

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