Gold and Silver Brace for Volatility as US Fed, BoJ, BoE, and PBoC Set to Announce Rate Decisions

Federal Reserve Meeting This week

Gold Price, Federal Reserve Meeting, Bank of Japan Meeting, Comex Gold Price, US Fed: This week, all eyes are on four major central banks as they announce critical interest rate decisions. The Federal Reserve, Bank of England, Bank of Japan, and People’s Bank of China are set to unveil their policies, shaping the outlook for global financial markets. Among these, the Federal Reserve meeting is particularly crucial as it will project interest rates, GDP growth, and inflation for 2025.

Speculation surrounds the Bank of Japan’s decision, with many analysts anticipating a rate hike, although the BoJ has remained tight-lipped about its plans.

Gold and Silver Price Update
On Friday, both gold and silver ended the week on a weaker note in international and domestic markets:
International Markets:
Gold February futures settled at $2,675.80 per troy ounce, down 1.24%.
Silver March futures settled at $31.028 per troy ounce, down 1.87%.

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Domestic Markets (MCX):
Gold February futures closed at ₹77,136 per 10 grams, a loss of 1.07%.
Silver March futures settled at ₹91,001 per kilogram, down 1.76%.

The bearish momentum in bullion markets followed the release of hotter-than-expected U.S. Producer Price Index (PPI) data. November’s U.S. PPI came in at 3.0%, well above the Federal Reserve’s inflation target of 2.0%, which cast doubt on future rate cuts in 2025.

Market Sentiments and Predictions
Despite the mixed economic data, gold and silver prices remain supported by geo-political tensions and Chinese stimulus expectations.
Manoj Kumar Jain, Director at Prithvi Finmart, expects bullion prices to remain volatile this week due to dollar index fluctuations, central bank meetings, and ongoing geo-political developments. He highlighted key levels to watch:
Comex Gold:
Support: $2,588–$2,642 per troy ounce
Resistance: $2,694–$2,722 per troy ounce

Comex Silver:
Support: $30.74–$31.40 per troy ounce
Resistance: $31.40–$31.70 per troy ounce
In the domestic market (MCX):
Gold Support: ₹76,800–₹76,440
Gold Resistance: ₹77,450–₹77,720
Silver Support: ₹90,350–₹89,500
Silver Resistance: ₹91,800–₹92,650

Jain advised investors to wait for market stability before initiating fresh long positions and suggested adding bullion in a staggered manner for long-term investments.

Key Predictions
CA Surendra Mehta, National Secretary of IBJA, maintained his accurate predictions from last week and provided the following range forecasts for 16–20 December 2024:
Gold Spot: $2,610–$2,710
Silver Spot: $30.02–$31.29
Gold INR: ₹75,850–₹78,750
Silver INR: ₹89,400–₹93,200

JM Financial’s View
Gold prices are expected to maintain a positive trend with strong support at ₹76,500. An upside potential is projected at ₹79,000–₹79,800. However, if gold breaches the ₹76,500 level, further corrections could be seen. For silver, momentum remains strong above ₹89,850, with prices likely to move higher toward ₹96,500–₹98,800.

SMC Global’s Outlook
On COMEX, gold is anticipated to trade within the range of $2,570–$2,690, while silver is projected to range between $30.50–$33.00. On MCX, gold is expected to move between ₹75,100–₹77,900, and silver between ₹88,900–₹95,000, as investors navigate mixed market signals.

CA Surendra Mehta, National Secretary, IBJA
“Last week, we projected spot gold could rise to $2,723, and it exceeded expectations, reaching $2,726.”
For the week of December 16–20, 2024, the predicted ranges are:
Gold Spot: $2,610–$2,710
Gold (INR): ₹75,850–₹78,750
Silver Spot: $30.02–$31.29
Silver (INR): ₹89,400–₹93,200

Big Events of The Week
United States (US)
Monday, December 16, 2024
8:15 PM: S&P Global Composite PMI Flash (DEC)
8:15 PM: S&P Global Manufacturing PMI Flash (DEC)

China (CN)
7:30 AM: Industrial Production YoY (NOV)
7:30 AM: Retail Sales YoY (NOV)
7:30 AM: Unemployment Rate (NOV)

Tuesday, December 17, 2024
US

7:00 PM: Retail Sales MoM (NOV)
7:00 PM: Retail Sales YoY (NOV)
7:45 PM: Industrial Production MoM (NOV)

Wednesday, December 18, 2024
US
7:00 PM: Building Permits Prel (NOV)
7:00 PM: Housing Starts (NOV)
12:30 AM: Fed Interest Rate Decision
12:30 AM: FOMC Economic Projections
12:30 AM: Interest Rate Projection – Longer Term
1:00 AM: Fed Press Conference
Euro Area (EA)
3:30 PM: Inflation Rate YoY Final (NOV)

Thursday, December 19, 2024
US
7:00 PM: GDP Growth Rate QoQ Final (Q3)
7:00 PM: GDP Price Index QoQ Final (Q3)
7:00 PM: Initial Jobless Claims (DEC 14)
7:00 PM: Core PCE Prices QoQ Final (Q3)
8:30 PM: Existing Home Sales (NOV)

United Kingdom (UK)
5:30 PM: BoE Interest Rate Decision

Japan (JP)
8:30 AM: BoJ Interest Rate Decision

Friday, December 20, 2024
7:00 PM: Core PCE Price Index MoM (NOV)
7:00 PM: Personal Income MoM (NOV)
7:00 PM: Personal Spending MoM (NOV)
8:30 PM: Michigan Consumer Sentiment Final (DEC)

China
6:45 AM: Loan Prime Rate 1Y
6:45 AM: Loan Prime Rate 5Y

Outlook for the Week
The Federal Reserve’s policy meeting and economic projections for 2025 will likely set the tone for the markets, with investors closely monitoring inflation and rate trajectory. The Bank of Japan’s unexpected moves and geo-political developments will also influence gold and silver prices. While near-term volatility is expected, long-term investors can use dips as buying opportunities.

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Disclaimer:
The information provided in this article is for informational purposes only and reflects the views of industry experts. Before making any investment decisions, it is recommended that you consult a financial advisor. The team at Gold Price Today does not engage in personal buying, selling, or trading of gold or silver on exchanges. We are not responsible for any gains or losses incurred based on the information presented here.