Supported by expectations of further easing of monetary policy after the US interest rate cut this week, gold has stabilized after rising for three consecutive days. The trading price of silver is close to its historical high.
Gold prices were largely unchanged at around $4,280 per ounce, after rising 1.2% in the previous trading session. Federal Reserve policymakers, who cut borrowing costs on Wednesday, did not rule out further rate cuts next year. Despite the Fed’s indication that it would only cut rates once in 2026, swap traders are still betting on two rate cuts that year.
The low-interest-rate environment is beneficial for precious metals such as gold and silver that do not pay interest. Additionally, the Federal Reserve will start purchasing $40 billion of treasury bonds each month starting from Friday to rebuild the reserves of the financial system, which will further support the gold price.
This year, the price of gold has soared by more than 60%, and the price of silver has more than doubled. Both metals are on track for their best annual performance since 1979. This strong rally has been driven by increased purchases by central banks and investors’ selling of sovereign bonds and currencies.
Data from the World Gold Council shows that the holdings of gold ETFs have increased every month this year except May. Meanwhile, in recent weeks, the price of silver has been boosted by surging demand and tight supply and demand imbalances in major trading centers. On Thursday, the price of silver hit a record high of $64.3120 per ounce.
As of 7:30 a.m. Singapore time, the price of gold was largely unchanged at $4,280.34 per ounce. The price of silver fell slightly by 0.1% to $63.5080 per ounce.
Technical analysis:
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Gold: Yesterday, the green buy limit alert from our plugin failed, but the rebound after the yellow liquidity sweep was perfect. After the price broke below 4208, it quickly stabilized and rose, reaching above 4280. Today, we should pay attention to the demand zone support near 4240. If it can be confirmed by a pullback, it will be a reasonable opportunity to buy again. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: Yesterday, our buy limit in the green zone of the Nasdaq failed, but the rebound after the low sweep in the yellow zone with liquidity was perfectly achieved. Recently, we suggest maintaining the operation attempts after the sweep with liquidity and not chasing highs easily. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: Yesterday, the price dropped below the yellow zone and did not rebound, so the buy stop was not triggered. We will continue to keep an eye on the previous low level intraday, and try to catch the rebound signal after the sweep. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
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