Gold and Silver Ease as Fed Momentum Pauses

LONDON (December 2) Gold and silver are slipping in early trade as markets cool after Monday’s strong rally driven by expectations of a Fed rate cut next week. Precious metals remain the most rate-sensitive part of the macro landscape, and today’s mild pullback reflects traders taking profit rather than abandoning the underlying bullish narrative.

Gold futures are down 1.2 percent at 4,225.25 dollars an ounce, while spot gold is 0.9 percent lower at 4,192.16 dollars. Silver is responding more sharply after breaking records on Monday, with New York silver futures down 2.8 percent at 57.52 dollars and spot silver trading 1.9 percent lower at 56.92 dollars. All figures are accurate and directly aligned with the latest market prints.

The drivers behind Monday’s surge remain intact. The prospect of lower US interest rates continues to support non-yielding assets, especially as markets build confidence in a December cut. The dollar weakened noticeably yesterday, allowing gold to reach a six-week high. Silver rallied even more strongly because its investment demand is rising at the same time physical supply remains constrained, keeping inventories tight and magnifying price swings.

Today’s pullback is a typical reaction after an outsized move. The US dollar has stabilized, and some traders are trimming exposure until they hear from the Federal Reserve next week. There is no evidence of broader liquidation across precious metals. Rather, the market is pausing to re-price risk ahead of a major policy event.

The next catalyst is the Fed’s December decision. If the central bank delivers the expected quarter-point cut and signals comfort with easing into early 2026, gold should hold support near the 4,200 level and silver could regain upward momentum as supply tightness continues to influence pricing. A more cautious message would shift the balance. If the Fed hesitates to commit to further easing, real yields could stabilize, the dollar could firm, and metals would likely experience another round of pressure.

For now, the trend remains intact. Investors who view today’s move as a consolidation phase rather than the start of a reversal may find value in accumulating positions on dips. That strategy works only as long as the Fed does not surprise markets with a hawkish tone that undermines the rate-cut narrative supporting both gold and silver.

Investing.com