Gold and silver prices weakened in midday U.S. trading on Tuesday, as both precious metals saw some profit-taking and position squaring ahead of major central bank meetings scheduled for this week. December gold futures dropped $18.90 to $2,589.90, while December silver futures fell $0.175 to $30.97.
The focus of the market is on the Federal Reserve’s Open Market Committee (FOMC) meeting, which began Tuesday and concludes Wednesday with a statement and press conference from Fed Chair Jerome Powell. Market expectations have shifted recently, with a growing belief in a 0.5% interest rate cut. The CME’s FedWatch Tool now indicates a 67% probability of a 50 basis-point cut, while the chances of a smaller 25 basis-point cut have slipped to 33%. Additionally, the Bank of England and the Bank of Japan are set to hold their monetary policy meetings on Thursday.
Stronger-than-expected U.S. economic data released earlier, including retail sales and industrial production figures, added pressure on gold and silver prices. The U.S. dollar index strengthened modestly following the reports, further weighing on precious metals.
Meanwhile, Nymex crude oil prices rose at midday, trading around $71.75 per barrel. The benchmark 10-year U.S. Treasury note yield declined to approximately 3.6%.
Gold Technical Outlook
Technically, December gold bulls maintain a strong near-term advantage, with the next upside price objective being a close above solid resistance at $2,700.00. On the downside, bears are eyeing a move below solid support at $2,500.00. Key resistance levels are $2,600.00, followed by the record high of $2,617.40. Support is seen at $2,570.40 and then $2,550.00. Wyckoff’s Market Rating for December gold stands at 8.5, reflecting strong bullish momentum.
Silver Technical Outlook
December silver bulls also retain an overall near-term technical advantage. Their next upside goal is to close above the July high of $32.46, while bears are targeting a decline below solid support at $29.00. Resistance is first seen at $31.46, followed by $32.00. Support lies at $30.67 and $30.00. Wyckoff’s Market Rating for December silver is 6.5, suggesting a moderate bullish trend.
