Fundamental News and Triggers

• 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 so-called dot plot showed that officials expect the Fed funds rate to decrease to 3.9% in 2025, implying two additional 25 basis point interest rate cuts in 2025 compared to the earlier prediction of four cuts in September.
• Fed Chair Jerome Powell stated in his post-meeting press conference that inflation has fallen dramatically over the last two years, albeit it remains slightly higher than the central bank’s longer-run aim of 2%.
• Following the data, gold and silver prices fell substantially as traders viewed the cut as hawkish with 50 bps of easing expected in 2025 and 50 bps in 2026.

 

Technical Triggers

• If Gold sustains below $2600 (Rs 75800), we could see the selloff continuing up to $2550 (Rs 74900) in the last few days of December. If prices rebound, it can bounce back to $2680 (Rs 77000)
• Silver has broken a very crucial level of $29.70 (Rs 88500), the next target is $29 (Rs 87000). If prices recover, it can bounce back to $30.5 (Rs 91000)

Support and Resistance

 

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