Core drivers

- On Sept 18 the Fed cut rates by 25 bps, lowering the federal funds target range to 4.00%–4.25%, reducing the opportunity cost of holding gold.

- The Fed expects another 50 bps of cuts in 2025 and a looser policy path, which supports gold in a long-term low-rate environment.

- Powell said policy focus is shifting from inflation to employment but warned the cuts are risk-management decisions and do not require rapid rate moves—this may limit gold’s near-term upside.

- Overall, demand for gold as a hedge remains solid despite mixed signals.

Gold technical strategy

- Asian session continued a one-sided rally; spot ~3718.00. 15-minute moving averages are bullish.

- Trade idea: buy on a pullback to 3703.00.

- Stop-loss: below 3684.00.

- Target: around 3733.00.

Silver technical strategy

- Asian session also bullish; spot ~43.670. 1-hour moving averages are bullish.

- Trade idea: buy on a pullback to 42.970.

- Stop-loss: below 42.350.

- Target: around 44.000.

Risk warning: Trading markets carry unpredictable risks, including the loss of principal. This analysis is for reference only and is not investment advice. Investors should make independent decisions based on their own risk tolerance.