SINGAPORE — Gold prices held firm around $2,616 per ounce on Thursday, supported by growing market confidence as Federal Reserve officials signaled a more cautious path on rate cuts. Meanwhile, silver remained under pressure due to the stronger U.S. dollar .

Fed’s Slowdown on Rate Cuts Supports Gold

Traders are pricing in a delayed easing cycle, with the Fed expected to maintain its target interest rate at roughly 3.9% through 2025—a more conservative pace than previously anticipated. This cautious stance has bolstered gold’s appeal as a safe-haven asset.

Silver Pressured by Dollar Strength

Silver (XAG) traded near $29.62, weighed down by appreciation in the U.S. dollar and silver’s heightened sensitivity to broader economic sentimen.

U.S. Data Reinforcing Dollar Dominance

Recent U.S. economic indicators—moderating inflation and weaker durable goods orders—reinforce the view of a slower Fed. This dynamic has lent added strength to the dollar, which in turn suppresses silver’s performance more than gold’s.

Short-Term Outlook

  • Gold: Likely to hover between $2,600–$2,650, anchored by strong Fed communications. A breakout above this band may hinge on new geopolitical or inflation signals.

  • Silver: Susceptible to further downside unless the dollar retreats or upcoming data softens expectations on U.S. interest rates.

By Staff Writer | December 25, 2024 | Edited for WTFwire.com
Source: FXEmpire – Gold (XAU) Silver (XAG) Daily Forecast: Gold Steady as Fed Slows Rate Cuts, Boosting Market Confidence