Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
Gold prices held above $2700 as US CPI came in line with market expectations. It hit a high of $2,726 and currently trading around $2716
U.S. CPI Insights
The U.S. Consumer Price Index (CPI) for November 2024 showed an annual increase of 2.7%, up from 2.6% in October, matching economists' predictions. Monthly, the CPI rose by 0.3%, reflecting seasonal price changes. The core CPI, which excludes food and energy, increased by 3.3%, indicating ongoing inflation in various areas. This data is important as it comes just before the Federal Reserve’s meeting, where they will consider potential interest rate cuts while balancing the need for economic support and managing inflation concerns.
Market Watch for ECB
Markets are closely watching the European Central Bank's (ECB) monetary policy today for further direction
Fed Rate Cut Probability Rises
According to the CME FedWatch Tool, the probability of a rate cut by the Federal Reserve in December has increased to 98.60% from 71% just a week ago.
Technical Analysis of Gold
From a technical standpoint, gold prices are currently above both short-term and long-term moving averages, indicating a bearish trend. Immediate support is at $2,670, with potential declines to $2,650, $2,620, $2,600, $2,570, $2,536, and $2,500. Resistance is set at $2,730; breaking this could lead to prices rising towards $2,750, $2,775, and $2,800.
Trading Strategy Recommendation
A suggested trading strategy is to buy on dips between $2700, maintain a stop-loss at $2670, and aim for a target price of $2775/$2800.
