The Federal Reserve’s next move could shake the commodities market — and gold & silver traders are watching closely.
Historically, rate cuts have:
- Weakened the dollar → boosting demand for precious metals
- Lowered bond yields → making non-yielding assets like gold more attractive
- Triggered safe-haven buying during uncertainty
The Current Setup:
- Gold has been hovering around ₹X on MCX, with key resistance near ₹Y
- Silver is trading around ₹A, facing resistance near ₹B
- Global macro uncertainty + potential Fed easing = a recipe for volatility
Fed cuts by 25 bps – Gradual upside in gold, silver lags slightly
Fed cuts by 50 bps – Sharp rally in both metals, silver potentially outpacing gold on % gains
No cut – Metals could consolidate or pull back in the short term
Will gold reach more highs?