Gold Extends Gains as Fed Rate Cut Lifts Precious Metals by HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold prices advanced for a third straight day following the Federal Reserve's widely anticipated interest-rate cut on Wednesday, which simultaneously saw silver climb to a record high. A dovish stance from the Fed is typically positive for precious metals, as these non-yielding assets benefit when interest rates are low.
The US central bank lowered rates for a third consecutive meeting and maintained its outlook for just one more cut in 2026, but it subtly adjusted the wording of its statement, hinting at increased uncertainty surrounding future reductions. The price of silver has surged, more than doubling its value since January 1 st and setting a fresh record high above $60 per troy ounce. Crucially, a long-running supply shortage is tightening the physical market, while strong industrial and investment demand continues to fuel its ascent.
The prospect of a Federal Reserve rate cut provides further tailwinds. Oil prices extended gains following a series of maritime incidents that have heightened geopolitical tension, including the US seizure of a sanctioned tanker off Venezuela. The seizure is expected to deter shipments from the South American nation and escalate the risk of wider conflict. The war-risk premium has been further bolstered by a Ukrainian attack on a shadow-fleet tanker linked to Russia’s oil trade. Copper surged back toward its record high on Wednesday, fueled by fresh warnings of sizable market shortages as global mine supply struggles to keep pace with accelerating demands.
Despite a recent slowdown in consumption from top buyer China, investors remain strongly bullish on copper’s long-term prospects. Asian equities poised to echo gains on Wall Street after the Federal Reserve cut interest rates and Chair Jerome Powell voiced optimism that the US economy will strengthen.
Gold
* Trading Range: 127800 to 130200
* Intraday Trading Strategy: Buy Gold Mini Jan Fut at 129200 SL 128400 Target 130200
Silver
* Trading Range: 190000 to 196000
* Intraday Trading Strategy: Buy Silver Mini Feb Fut at 192500 SL 191000 Target 194200
Crude Oil
* Trading Range: 5200 to 53500
* Intraday Trading Strategy: Sell Crude Oil Dec Fut on bounce at 5350 SL 5410 Target 5260
Natural Gas
* Trading Range: 395 to 420
* Intraday Trading Strategy: Sell Natural Gas Dec Fut on bounce at 417 SL 421 Target 407
Copper
* Trading Range: 1074 to 1110
* Intraday Trading Strategy: Buy Copper Dec Fut at 1080 SL 1070 Target 1005
Zinc
* Trading Range: 308 to 316
* Intraday Trading Strategy: Sell Zinc Dec Fut above 312 SL 309 Target 316
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