{"id":65131,"date":"2025-12-21T13:50:16","date_gmt":"2025-12-21T13:50:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/commodity-wrap-silver-soars-to-new-highs-gold-dips-as-markets-await-fed-rate-decision\/"},"modified":"2025-12-21T13:50:16","modified_gmt":"2025-12-21T13:50:16","slug":"commodity-wrap-silver-soars-to-new-highs-gold-dips-as-markets-await-fed-rate-decision","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/commodity-wrap-silver-soars-to-new-highs-gold-dips-as-markets-await-fed-rate-decision\/","title":{"rendered":"Commodity wrap: silver soars to new highs; gold dips as markets await Fed rate decision"},"content":{"rendered":"

(Originally posted on : Oil News, Latest Stories & Analysis | Invezz )<\/b>
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Gold prices edged down ahead of the interest rate decision by the US Federal Reserve later on Wednesday.<\/p>\n

Meanwhile, silver prices extended its record-breaking rally above the $61 per ounce mark on robust industrial demand and declining inventories.<\/p>\n

Oil prices were largely steady as investors waited for the outcome of the US Fed\u2019s two-day policy meeting and progress in the Russia-Ukraine peace talks.<\/p>\n

Base metal prices were also in the green as the market expected the Fed to cut rates, which is supportive for demand for metals.<\/p>\n

Copper prices are showing strength this morning, trading firmer as markets anticipate the Federal Reserve\u2019s policy announcement scheduled for later today.<\/p>\n

The metal has regained ground following Tuesday\u2019s decline, with the price currently near $11,639, marking a $90 increase.<\/p>\n

\u201cThe expectation of a third consecutive quarter-point cut is underpinning sentiment, but the real focus will be on the Fed\u2019s forward guidance,\u201d Neil Welsh, head of metals at FCA-regulated multi-asset brokerage Britannia Global Markets, said in an emailed commentary.<\/p>\n

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Any signal of a slower pace of easing could weigh on risk assets, including industrial metals, which have rallied strongly this year.<\/p>\n<\/blockquote>\n

Gold down<\/h2>\n


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Gold prices dipped as investors waited for a US Federal Reserve rate cut and sought signals regarding the central bank\u2019s future policy direction.<\/p>\n

A 25-basis-point rate reduction is highly anticipated (with an 88% market probability) as the Federal Open Market Committee (FOMC) concludes its two-day policy meeting.<\/p>\n

The rate cut announcement is scheduled for 1900 GMT, followed by a speech from Chair Jerome Powell at 1930 GMT.<\/p>\n

The yield on the benchmark 10-year US Treasury has climbed to its highest point in over three months, which further weighed on gold.<\/p>\n

\u2018A quarter-point rate cut appears to be a done deal. Traders are likely to focus on the Fed\u2019s outlook for monetary easing into 2026,\u201d said David Morrison, senior market analyst at Trade Nation.<\/p>\n

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That means the FOMC\u2019s quarterly Summary of Economic Projections, along with the tone of Fed Chair Powell\u2019s subsequent press conference, will be parsed closely.<\/p>\n<\/blockquote>\n

At the time of writing, the COMEX gold contract was at $4,225.55 per ounce, down 0.3% from the previous close.<\/p>\n

Silver hits record high<\/h2>\n


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Silver\u2019s record-breaking rally seems to be never-ending as the metal crossed $61 per ounce for the first time on COMEX.<\/p>\n

\u201cBuying interest has been intense, supported by lingering supply tightness and strong ETF inflows. But the daily MACD indicates that it is once again entering seriously overbought territory,\u201d Morrison said.<\/p>\n

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There\u2019s nothing that says silver can\u2019t continue to be overbought. In fact, when silver is on a tear, as it is now, the MACD can become exceedingly overextended.<\/p>\n<\/blockquote>\n

Silver\u2019s explosive surge this year, more than doubling its price and significantly outperforming gold\u2019s substantial 60% gain, underscores a warning: the metal may have risen too much, too quickly, according to Morrison.<\/p>\n

The contrasting momentum\u2014gold\u2019s steadiness versus silver\u2019s volatility\u2014remains the defining characteristic of the precious metals market this week.<\/p>\n

The rally has been driven by a strong combination of industrial demand and increased investment.<\/p>\n

Significant inflows into exchange-traded funds, as investors sought silver exposure, boosted momentum, which was further amplified by speculative positioning.<\/p>\n

\u201cThe metal\u2019s dual role as both an industrial input and a store of value has made it particularly attractive, with manufacturers racing to secure supplies while investors increasingly view it as a cheaper alternative to gold,\u201d Britannia Global Markets\u2019 Welsh said.<\/p>\n

At the time of writing, the March silver contract on COMEX was at $61.725 per ounce, up 1.5% from the previous close.<\/p>\n

Oil steady<\/h2>\n


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As investors monitored developments in Russia-Ukraine peace negotiations and anticipated the forthcoming US interest rate decision, oil prices held steady on Wednesday.<\/p>\n

According to API figures cited by market sources on Tuesday, US crude inventories decreased last week by 4.78 million barrels.<\/p>\n

In contrast, gasoline stocks saw a significant increase of 7 million barrels, and distillate inventories grew by 1.03 million barrels. Official government data is expected at 1530 GMT.<\/p>\n

Amid expectations of a cooling labor market, markets were anticipating that the Fed would reduce its main interest rate by a quarter of a point on Wednesday.<\/p>\n

Despite the potential for lower interest rates to stimulate oil demand by fostering economic growth, oil price gains are limited by concerns that supply may exceed demand.<\/p>\n

ING analysts noted that the oil market is increasingly moving toward a projected surplus, yet Russian supply continues to pose a risk.<\/p>\n

\u201cOur base case remains that Russia will find ways to work around the latest US sanctions,\u2019 Warren Patterson, head of commodities strategy at ING Group, said in a note.<\/p>\n

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Russia has demonstrated an ability to keep oil flowing since 2022 despite sanctions, embargoes, and drone attacks.<\/p>\n<\/blockquote>\n

Meanwhile, President Volodymyr Zelenskiy of Ukraine announced that his nation and its European allies are set to shortly present the US with \u201crefined documents\u201d detailing a peace plan to conclude the conflict with Russia.<\/p>\n

The removal of international sanctions on Russian companies is a potential outcome of a peace deal between Ukraine and Russia, which could subsequently lead to the release of restricted oil supply.<\/p>\n

At the time of writing, the price of West Texas Intermediate crude oil was at $58.35 per barrel, up 0.2%, while Brent was at $62.02 per barrel, up 0.1% from the previous close.<\/p>\n<\/p><\/div>\n

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(Originally posted on : Oil News, Latest Stories & Analysis | Invezz ) Gold prices edged down ahead of the interest rate decision by the US Federal Reserve later on Wednesday. Meanwhile, silver prices extended its record-breaking rally above the $61 per ounce mark on robust industrial demand and declining inventories. Oil prices were largely […]<\/p>\n","protected":false},"author":3947362381,"featured_media":65132,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[38],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/65131"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362381"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=65131"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/65131\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/65132"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=65131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=65131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=65131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}