Market Update
Spot gold traded near 4226 dollars per ounce on Wednesday, supported by the Federal Reserve’s expected 25-basis-point rate cut, while Powell avoided committing to another near-term cut but did not rule out further easing, which markets interpreted as keeping the door open for a potential January rate cut.
WTI crude hovered near 58.83 dollars per barrel, rising on supply concerns after the U.S. seized an oil tanker near Venezuela.
Gold
Gold posted gains on Wednesday as the Fed delivered its expected rate cut. After intraday swings, spot gold settled 0.7 percent higher, reaching 4238.59 dollars at the session high. Traders bought dips after early profit-taking, and the Fed’s split vote reinforced expectations that monetary policy will stay accommodative.
Silver surged sharply, hitting a record high of 61.85 dollars per ounce and extending its year-to-date gain to 113 percent. Strong industrial demand, falling inventories, and its designation as a critical mineral in the U.S. continue to support the metal.
Platinum fell 2.4 percent, while palladium dropped 2 percent.
Powell signaled caution, noting policy is already positioned for changing economic conditions but avoided committing to another rate cut. Markets still interpret the tone as leaving room for further easing, providing underlying support for gold.
Gold Technical Outlook
Gold extended its breakout, with spot prices last seen near 4228 dollars. The daily chart shows a clear upside bias, with a breakout candle, widening Bollinger bands, and strong bullish alignment across moving averages. MACD remains in a strong bullish phase and KDJ oscillators hold in overbought territory, confirming momentum.
Support is now seen at 4210 dollars (breakout retest) and deeper support at 4185–4170 dollars.
Resistance sits at 4248 dollars, with scope toward 4300 dollars if broken, and a medium-term target near 4580 dollars.
The preferred strategy remains buying on dips, avoiding emotional chasing at highs.
Today’s Gold Levels
• Resistance: 4250 – 4270
• Support: 4205 – 4185
Crude Oil
Oil prices closed higher Wednesday after the U.S. Coast Guard seized an oil tanker near Venezuela, raising short-term supply concerns. Brent settled 0.4 percent higher at 62.21 dollars, while WTI also rose 0.4 percent to 58.46 dollars, with both extending gains in after-hours trading.
Analysts note that the tanker incident heightened worries about supply from sanctioned producers including Venezuela, Iran, and Russia. Additional disruptions could trigger sharper volatility.
U.S. crude inventories fell 1.8 million barrels, less than expected, while the Fed’s rate cut added a modest demand-side lift. However, Powell offered no explicit guidance on future cuts, keeping near-term sentiment mixed.
Technical Outlook
Oil remains in a secondary downtrend on the daily chart, repeatedly testing the 56-dollar support zone. MACD continues to drift weakly below zero, reflecting persistent bearish pressure.
Short-term charts show WTI breaking to new lows near 58.15 dollars, with moving averages aligned bearishly. Momentum favors continued downside, although intraday consolidation may occur.
Today’s Levels
• Resistance: 60.5 – 61.5
• Support: 57.5 – 56.6
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