- Gold and Silver Â
Gold and Silver remain bullish for the fourth consecutive session gaining 0.14% and 0.19% so far today supported by the Fed’s recent rate cut.
Prices of gold were hovering around $4,285 per ounce, after it appreciated by 1.2 percent on Thursday. While silver is trading just below $64, after jumping 3.08%. Low interest rates are supportive of precious metals like gold and silver, as they don’t generate interest.
Gold has had an outstanding year with an increase of 62% driven by several strong catalysts. Central bank purchases, and tendencies of de-dollarization, set a strong floor for demand. Geopolitical pressures on several continents implied a risk premium, and money inflows into Exchange-Traded Funds after several years of outflows provided institutional support.
On the 4-hour chart, gold is making a bull flag pattern after a strong breakout. The price is currently consolidating around $4,282.83, with support at $4,240-$4,260 and $4,300-$4,320. A breach above $4,300 will confirm a continuation scenario, while a slide below $4,200 will lead to a small correction.
Silver maintains strong bullish momentum on the 4-hour chart, breaking above major resistances and currently ranging within higher regions near $63.76. It forms higher highs and higher lows with a strong support level at $62.50-$62.80. Intraday supports lie at $64.50-$65.00.
- US MarketsÂ
The S&P 500 closed 0.47% higher at $6,919.50, breaking decisively above the $6,910 resistance as strong afternoon momentum carried the index to session highs. SPX is trading slightly lower in early Asian hours as markets consolidate after the breakout.
Drivers
* Sector rotation is accelerating, with capital shifting toward small caps, cyclicals, and the Dow, reflecting expectations of a global growth reacceleration. The Dow closed at a record high, supported by financials.
* Bullish sentiment toward small caps strengthened further as the IWM call skew flipped from the bottom to the top of its one-year range.
* The Nasdaq fell 0.35%, pressured by Oracle’s 11% decline, which revived concerns about AI infrastructure spend timing. Broadcom also slid after guiding to narrower gross margins.
* The market narrative is incrementally tilting toward value stocks, reinforced by labour softness: weekly jobless claims rose to 236,000, above estimates, underscoring a cloudier labour market.
* Rate expectations remain stable, with a 75% probability of a hold at the next Fed meeting, consistent with the Fed’s post-FOMC hawkish tone. US Treasuries and the dollar were steady as markets continued digesting the Fed outlook.
- Crude Oil
After slipping to its lowest level in nearly two months amid concerns over a supply glut, oil regained some ground in early trading on Friday. The uptick was modest and mainly due to the broader bullish sentiment and risk appetite in the markets. With the year approaching its end, markets are rejoicing the December rate cut and strong outlook on the U.S. economy for the year ahead. However, the oil markets are projected to face an even more oversupplied market in 2026 than initially feared. This is expected to cap any gains in the commodity sparked by short-lived catalysts like a flare-up in geopolitical tensions between Russia and Ukraine. Moreover, the Trump’s administration’s decision to seize a Venezuelan tanker has signaled stricter enforcement, which is typically negative for demand sentiment. It also presents a threat to an estimated 30% of Venezuelan exports if the U.S. continues to enforce sanctions. Meanwhile, production from countries like Brazil is on the rise after a recent outage. Production from countries like the U.S., Guyana, Canada, and Argentina is also strong.
WTI is up 0.18% for the day at $58, with immediate support at $57.59, aligning with the early October and late November lows. The next support is at $56.97, with 50-SMA resistance at $59.28. Brent is up 0.16% at $61.71, with immediate support at $61.27 and the next support at $60.40. It has 50-SMA resistance at $63.03.
