Gold hits record high ahead of Fed meeting
2025-09-16 22:35:38
Gold and silver prices rose in early U.S. trading on Tuesday (September 16), with gold reaching a new high and silver reaching a 14-year high. Market expectations of a more accommodative monetary policy from the Federal Reserve in the coming months have driven the gains in both precious metals. December gold futures rose $14.40 to $3,733.60 (spot gold price was $3,696). December silver futures rose $0.323 to $43.28.
The Federal Open Market Committee (FOMC) meeting began this morning and will conclude Wednesday afternoon local time, with Fed Chairman Powell expected to deliver a statement and hold a press conference. Markets widely expect the FOMC to announce a 25 basis point interest rate cut, the first since November 2024. This decision comes as the Fed faces criticism for its slow response to weakening US economic data. Updated Fed forecasts on Wednesday are likely to show slowing US economic growth and rising unemployment, and Fed Chairman Powell will face tough questions about the Fed's monetary policy at his post-meeting press conference Wednesday afternoon.
Global stock markets were mixed overnight, with U.S. stock indexes expected to open slightly higher in New York and hit new all-time highs.
In overnight news, trade talks between the United States and China in Madrid, Spain, showed signs of progress. U.S. Treasury Secretary Jeff Bessant stated that the commercial terms of the TikTok transaction have been finalized. Improved trade relations between the United States and China could mean better economic growth for both countries, which is positive for gold and silver from a demand perspective.
According to Bloomberg, the United States and India are intensifying negotiations to resolve trade tensions between the two countries, with teams of officials from both countries holding separate talks in New Delhi this week. A person familiar with the matter in New Delhi revealed that India began negotiations on Tuesday morning with a U.S. trade delegation led by Assistant U.S. Trade Representative for South and Central Asia Brendan Lynch, who requested anonymity due to confidentiality of the discussions. India's chief negotiator, Rajesh Agrawal, said Monday that the meeting between the two trade teams is expected to determine the future direction of the U.S.-India negotiations. The two sides have been seeking to resolve their differences since the United States imposed a 50% tariff on India last month, the highest in Asia, to punish India for its trade barriers and purchases of Russian oil.
The key outside market developments today were that the U.S. dollar index was lower, hitting a seven-week low, while crude oil prices were firmer, trading around $63.75 a barrel. The benchmark 10-year U.S. Treasury yield is currently at 4.04%.
The U.S. is scheduled to release a heavy slate of economic data on Tuesday, including the Johnson Red Book weekly retail sales report, retail sales data, import and export prices, industrial production and capacity utilization, the National Association of Home Builders housing market index, manufacturing and trade inventory data.
(Comex Silver Daily Chart Source: Yihuitong)
From a technical perspective, December gold futures bulls have a strong overall near-term technical advantage. Bulls' next upside price objective is closing futures prices above strong resistance at $3,800. Bears' next near-term downside price objective is pushing futures prices below strong technical support at $3,600. First resistance is seen at $3,750, followed by $3,775. First support is seen at the overnight low of $3,711.80, followed by $3,700.
December silver futures bulls also have a strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above strong technical resistance at $45.00. Bears' next downside price objective is closing prices below strong support at $41.00. First resistance is seen at $43.50 and then at $44.00. Next support is seen at this week's low of $42.47 and then at $42.00.
The Federal Open Market Committee (FOMC) meeting began this morning and will conclude Wednesday afternoon local time, with Fed Chairman Powell expected to deliver a statement and hold a press conference. Markets widely expect the FOMC to announce a 25 basis point interest rate cut, the first since November 2024. This decision comes as the Fed faces criticism for its slow response to weakening US economic data. Updated Fed forecasts on Wednesday are likely to show slowing US economic growth and rising unemployment, and Fed Chairman Powell will face tough questions about the Fed's monetary policy at his post-meeting press conference Wednesday afternoon.
Global stock markets were mixed overnight, with U.S. stock indexes expected to open slightly higher in New York and hit new all-time highs.
In overnight news, trade talks between the United States and China in Madrid, Spain, showed signs of progress. U.S. Treasury Secretary Jeff Bessant stated that the commercial terms of the TikTok transaction have been finalized. Improved trade relations between the United States and China could mean better economic growth for both countries, which is positive for gold and silver from a demand perspective.
According to Bloomberg, the United States and India are intensifying negotiations to resolve trade tensions between the two countries, with teams of officials from both countries holding separate talks in New Delhi this week. A person familiar with the matter in New Delhi revealed that India began negotiations on Tuesday morning with a U.S. trade delegation led by Assistant U.S. Trade Representative for South and Central Asia Brendan Lynch, who requested anonymity due to confidentiality of the discussions. India's chief negotiator, Rajesh Agrawal, said Monday that the meeting between the two trade teams is expected to determine the future direction of the U.S.-India negotiations. The two sides have been seeking to resolve their differences since the United States imposed a 50% tariff on India last month, the highest in Asia, to punish India for its trade barriers and purchases of Russian oil.
The key outside market developments today were that the U.S. dollar index was lower, hitting a seven-week low, while crude oil prices were firmer, trading around $63.75 a barrel. The benchmark 10-year U.S. Treasury yield is currently at 4.04%.
The U.S. is scheduled to release a heavy slate of economic data on Tuesday, including the Johnson Red Book weekly retail sales report, retail sales data, import and export prices, industrial production and capacity utilization, the National Association of Home Builders housing market index, manufacturing and trade inventory data.
(Comex Silver Daily Chart Source: Yihuitong)
From a technical perspective, December gold futures bulls have a strong overall near-term technical advantage. Bulls' next upside price objective is closing futures prices above strong resistance at $3,800. Bears' next near-term downside price objective is pushing futures prices below strong technical support at $3,600. First resistance is seen at $3,750, followed by $3,775. First support is seen at the overnight low of $3,711.80, followed by $3,700.
December silver futures bulls also have a strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above strong technical resistance at $45.00. Bears' next downside price objective is closing prices below strong support at $41.00. First resistance is seen at $43.50 and then at $44.00. Next support is seen at this week's low of $42.47 and then at $42.00.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
