ECB Meeting, ECB Rate Cut, Bank of Canada, Federal Reserve, Fed Rate Cut: The rally in gold and silver continues. On Comex Futures, gold prices have surpassed the $2,750 mark, while silver is approaching $33. The Bank of Canada has implemented a 0.5% rate cut. Today’s focus is on the ECB meeting regarding interest rates.ECB is also expected to cut rates by 0.25 percent today. Looking ahead, the Federal Reserve is expected to cut rates on December 18th, with the Fed Watch Tool indicating a 98% chance of this happening following recent U.S. inflation data.
On Wednesday, both gold and silver closed on a positive note in the international markets. Gold’s February futures contract concluded at $2,756.70 per troy ounce, marking a 1.41% increase. Meanwhile, silver’s March futures contract settled at $32.967 per troy ounce, up by 0.67%. Similarly, domestic markets saw gains. The gold February futures contract closed at ₹79,002 per 10 grams, a rise of 0.85%, while the silver March futures contract ended at ₹95,802 per kilogram, up by 0.29%.
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The gains in gold and silver were buoyed by U.S. inflation data that met market expectations and a significant interest rate cut by the Bank of Canada. The U.S. CPI for November came in at 2.7%, bringing relief to market participants. The Bank of Canada reduced interest rates by 50 basis points to 3.25%, further supporting precious metal prices. As a result, gold prices reached a 5-week high and silver prices hit a 6-week high.
Geo-political tensions, central bank purchases, and discussions of Chinese stimulus are also underpinning the value of these metals. Gold is gearing up for new life highs in the international markets. Manoj Kumar Jain, Director at Prithvi Finmart, notes that gold and silver prices are expected to remain volatile this week due to fluctuations in the dollar index, geo-political tensions, and U.S. jobless claims data. However, he believes that gold and silver could hold their key support levels of $2,588 and $29.88 per troy ounce, respectively, on a weekly closing basis.
Jain indicates that gold has support at $2,734-$2,722, with resistance at $2,782-$2,804 per troy ounce. Silver has support at $32.66-$32.40, with resistance at $33.30-$33.64 per troy ounce in today’s session. At MCX, gold’s support is at ₹78,770-₹78,480, with resistance at ₹79,330-₹79,650. Silver’s support is at ₹95,150-₹94,400, with resistance at ₹96,650-₹97,350. Jain recommends buying gold on dips around ₹78,750 with a stop loss of ₹78,440, targeting ₹79,400. Similarly, he suggests buying silver around ₹95,200 with a stop loss of ₹94,400, targeting ₹96,800.
Key Events of the Week
Thursday, December 12, 2024
United States
07:00 PM: PPI MoM (NOV)
07:00 PM: Core PPI MoM (NOV)
07:00 PM: Initial Jobless Claims (DEC/07)
Euro Area
06:45 PM: ECB Interest Rate Decision
07:15 PM: ECB Press Conference
08:15 PM: ECB Economic Projections
08:45 PM: Speech by ECB President Lagarde
Friday, December 13, 2024
United States
03:00 AM: Fed Balance Sheet
07:00 PM: Export Prices MoM (NOV)
Geopolitical Tensions
Russia-Ukraine Conflict
Syria Crisis
Israel-Hamas Conflict
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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.
