• Gold and silver prices are stable, supported by risk aversion and anticipation of a 25bp rate drop by the Federal Reserve at its meeting on December 9-10.
  • With the Fed generally expected to cut interest rates by 25 basis points, traders will be watching the latest economic predictions (the Dot plot) and comments from Chair Jerome Powell for signals on the central bank’s plans for 2026 and beyond.
  • Current market pricing indicates a 90% chance of such a move, with expectations now pointing to two additional cuts next year, down from three only a week ago.
  • The market may be anticipating that the Fed may signal that, after this rate cut, there may be a halt in the first quarter of 2026 for a few months.

Technical Triggers   

  • Gold has started its upward journey again; the next target is $4300 (~Rs 132,000) and $4345 (~Rs 133,500) with strong support at $4200 (~Rs 129,000).
  • Silver can continue its rally towards $60 (~Rs 185,500) and $62 (~Rs 191,000), with firm support at $57 (~Rs 177,000), if tight supply conditions continue.

Dr.Renisha Chainani, Head- Research, Augmont