What is the story about?
Gold and silver remained range-bound on Tuesday (December 9) as global markets awaited policy cues from the US Federal Reserve. While a December rate cut is widely expected, investors are now focused on how policy guidance shapes expectations for next year.
Spot gold traded at $4,186.99 per ounce, while US futures inched lower to $4,215.80 an ounce. In India, 24-karat gold stood at ₹13,009 per gram, and silver at ₹188.90 per gram.
Markets look past December cut
Expectations for a quarter-point cut at the Fed’s December 9–10 meeting remain high, with futures assigning an 87% probability. However, the rise in US Treasury yields to a 2.5-month high has tempered enthusiasm for further gains in bullion, as higher yields raise the relative cost of holding precious metals.
Analysts say positioning has shifted after Fed Chair Jerome Powell earlier indicated that any future easing cycle may be slower than markets had anticipated.
The delay in US producer inflation data until January has also added to near-term uncertainty over the inflation outlook.
Indian market: Stable trade, limited triggers
Domestic gold prices stayed firm, supported by steady buying, though intraday movements remained muted in the absence of fresh catalysts.
According to market participants, traders are largely aligned with global cues ahead of the Fed outcome, with technical levels offering support around $4,165–4,135 an ounce and resistance near $4,230–4,265 an ounce.
Silver continues to outperform
Silver held at $58.10 per ounce, maintaining most of last week’s momentum after recording a new high of $59.32 an ounce. Its strength has been driven by low inventories, continued industrial consumption and higher investor participation. ETF demand remains robust, with recent inflows indicating sustained interest in the metal.
Domestic analysts note that supply constraints and firm industrial demand—particularly from electronics and clean-energy manufacturing—have broadened silver’s support base. Technical levels indicate support around $57.60–56.95 an ounce.
Key drivers ahead
Market attention now turns to:
Until the Fed outlines its policy stance, both gold and silver are expected to trade in tight ranges, with domestic prices tracking global signals.
Spot gold traded at $4,186.99 per ounce, while US futures inched lower to $4,215.80 an ounce. In India, 24-karat gold stood at ₹13,009 per gram, and silver at ₹188.90 per gram.
Markets look past December cut
Expectations for a quarter-point cut at the Fed’s December 9–10 meeting remain high, with futures assigning an 87% probability. However, the rise in US Treasury yields to a 2.5-month high has tempered enthusiasm for further gains in bullion, as higher yields raise the relative cost of holding precious metals.
Analysts say positioning has shifted after Fed Chair Jerome Powell earlier indicated that any future easing cycle may be slower than markets had anticipated.
The delay in US producer inflation data until January has also added to near-term uncertainty over the inflation outlook.
Indian market: Stable trade, limited triggers
Domestic gold prices stayed firm, supported by steady buying, though intraday movements remained muted in the absence of fresh catalysts.
According to market participants, traders are largely aligned with global cues ahead of the Fed outcome, with technical levels offering support around $4,165–4,135 an ounce and resistance near $4,230–4,265 an ounce.
Silver continues to outperform
Silver held at $58.10 per ounce, maintaining most of last week’s momentum after recording a new high of $59.32 an ounce. Its strength has been driven by low inventories, continued industrial consumption and higher investor participation. ETF demand remains robust, with recent inflows indicating sustained interest in the metal.
Domestic analysts note that supply constraints and firm industrial demand—particularly from electronics and clean-energy manufacturing—have broadened silver’s support base. Technical levels indicate support around $57.60–56.95 an ounce.
Key drivers ahead
Market attention now turns to:
- The Fed’s economic projections for 2025–26
- Remarks from Chair Powell on the pace of future cuts
- Reactions in US bond yields after the policy announcement
- Central bank gold purchases, including continued buying by China
- The strength of industrial demand for silver and ETF flows
Until the Fed outlines its policy stance, both gold and silver are expected to trade in tight ranges, with domestic prices tracking global signals.
