Primed For A Weekly Game After FOMC’s Change Of Heart

Gold is little changed in the Asia-Pac session, after closing 0.4% higher at $2036.36 on Thursday.

• Bullion is headed for a weekly gain after the Federal Reserve sent its strongest indication yet that it will pivot to easing monetary policy next year. While the Fed held the funds rate steady, as expected, Fed Chair Powell delivered little to no pushback to market expectations of significant rate cuts next year.
• The Dot Plot pointed to a 2024 median of 75bp of rate cuts, a sharper pace than indicated in September’s projections, with reductions expected by 17 of 19 members.
• US Treasuries extended their post-FOMC rally on Thursday on heavy volume. The 10-year yield fell to a 5-month low of 3.88%.
• That said, cash US Treasuries are sitting 3-4bps cheaper so far in the Asia-Pac session, with local participants possibly profit-taking following an assertive post-FOMC rally.
• According to MNI’s technicals team, recent strength in gold has signalled the end of the corrective Dec 4-13 pullback. A continuation higher would signal scope for a climb toward key resistance and the Dec 4 all-time high at $2135.39.