Metals Strength as Fed Cut Boosts Sentiment; USD Softens, Commodities Mixed | 11th December 2025

Metals Rally Post-Fed

Global markets advanced as the Federal Reserve’s expected rate cut continued to lift sentiment across metals and broader commodities. Gold extended its climb above $4,200 while Silver held firm near record levels despite a modest pullback from all-time highs. Meanwhile, the US Dollar eased toward 98.50, reflecting shifting interest rate expectations and softening momentum ahead of Jobless Claims data. Oil weakened below $59.00 amid Ukraine peace deal discussions, and the Australian Dollar remained pressured following mixed employment figures. Overall, the post-Fed environment favors metals and risk assets as traders reposition ahead of incoming US data.

Gold Forecast (XAU/USD)

Current Price and Context

Gold trades above $4,200 as the market reacts to the Federal Reserve’s expected rate cut. Investor optimism and USD weakness have supported further gains, while risk-on sentiment post-Fed keeps demand for safe-haven assets robust.

Key Drivers

Geopolitical Risks: Moderate; tensions remain globally but markets focus on Fed policy.

US Economic Data: Soft US data supports gold as the Fed signals lower rates.

FOMC Outcome: Expected Fed cut reinforces bullish sentiment.

Trade Policy: Tariff and trade concerns have minimal short-term impact.

Monetary Policy: Dovish Fed outlook underpins gold strength.

Technical Outlook

Trend: Bullish above $4,180.

Resistance: $4,220 and $4,250.

Support: $4,180 and $4,150.

Forecast: Gold likely to test $4,250 if momentum persists.

Sentiment and Catalysts

Market Sentiment: Positive; traders focus on Fed-driven gains.

Catalysts: Fed commentary, US labor data, global risk sentiment.

Silver Forecast (XAG/USD)

Current Price and Context

Silver corrects slightly to near $62 after reaching all-time highs, though overall momentum remains firm. Market participants continue to react to the Fed rate cut, which has weakened the Dollar and supported precious metals.

Key Drivers

Geopolitical Risks: Minimal direct impact; indirectly influences safe-haven flows.

US Economic Data: Dollar weakness supports silver gains.

FOMC Outcome: Dovish Fed outlook encourages bullish silver positioning.

Trade Policy: Limited near-term effect on industrial metals demand.

Monetary Policy: Lower rates boost silver attractiveness as a hedge. 

Technical Outlook

Trend: Bullish but consolidating.

Resistance: $63.00 and $63.50.

Support: $61.50 and $61.00.

Forecast: Silver likely to stabilize near $62 before testing $63.

Sentiment and Catalysts

Market Sentiment: Firm; buyers remain confident post-Fed.

Catalysts: Fed policy updates, USD moves, gold price correlation.

WTI Crude Oil Forecast

Current Price and Context

WTI trades below $59.00 as markets weigh Ukraine peace-deal discussions. While the Fed cut boosts risk assets, oil faces pressure from geopolitical developments and improving supply expectations.

Key Drivers

Geopolitical Risks: Ukraine peace talks and Middle East supply developments influence sentiment.

US Economic Data: Strong US data could support demand, but risk sentiment limits upside.

FOMC Outcome: Dovish Fed indirectly favors oil via risk-on sentiment.

Trade Policy: Minimal immediate impact.

Monetary Policy: Lower rates encourage risk assets but have mixed effect on oil. 

Technical Outlook

Trend: Neutral to mildly bearish.

Resistance: $59.50 and $60.00.

Support: $58.50 and $58.00.

Forecast: Oil likely to consolidate near $58.50–$59.00 unless geopolitical tensions escalate. 

Sentiment and Catalysts

Market Sentiment: Cautious; traders await clearer supply signals.

Catalysts: OPEC announcements, geopolitical developments, inventory data.

AUD/USD Forecast

Current Price and Context

AUD/USD remains depressed above 0.6600 after mixed Australian employment data. The post-Fed Dollar weakness provides some support, but the Aussie is constrained by domestic economic uncertainty and cautious risk sentiment.

Key Drivers

Geopolitical Risks: Low direct impact; market focus is domestic jobs data.

US Economic Data: Soft USD post-Fed provides slight AUD lift.

FOMC Outcome: Fed dovish stance reduces USD strength, indirectly supporting AUD.

Trade Policy: China-Australia trade remains a background factor.

Monetary Policy: RBA remains expected to hold rates, limiting upside. 

Technical Outlook

Trend: Neutral to bearish.

Resistance: 0.6630 and 0.6660.

Support: 0.6600 and 0.6575.

Forecast: AUD/USD likely to trade sideways with minor gains possible if risk sentiment improves.

Sentiment and Catalysts

Market Sentiment: Cautious; traders weigh mixed data.

Catalysts: Australian jobs data, Fed commentary, risk sentiment shifts.

US Dollar Index Forecast (DXY)

Current Price and Context

The US Dollar Index trades near 98.50 post-Fed rate cut, reflecting a softer USD. Market participants digest the Fed’s dovish move while awaiting upcoming US labor data for further guidance.

Key Drivers

Geopolitical Risks: Minimal; focus remains on Fed and domestic data.

US Economic Data: Jobless claims and labor data will influence short-term USD moves.

FOMC Outcome: Fed cut drives current USD softening.

Trade Policy: Minor influence in the short term.

Monetary Policy: Dovish Fed supports weaker USD momentum. 

Technical Outlook

Trend: Neutral to slightly bearish.

Resistance: 98.80 and 99.20.

Support: 98.20 and 97.90.

Forecast: USD may continue to soften, with consolidation expected until next data release.

Sentiment and Catalysts

Market Sentiment: Cautious; traders digest post-Fed adjustments.

Catalysts: Upcoming US jobs reports, Fed commentary, global risk sentiment.

Wrap-up

Metals remain the focal point of today’s session, with Gold and Silver maintaining strong bullish structures supported by the Fed’s dovish shift. The US Dollar’s extended pullback continues to influence commodity flows and cross-currency dynamics, while oil struggles to find direction amid geopolitical negotiations. With upcoming US labor indicators and global risk sentiment in play, markets may see heightened volatility into the next trading cycle. For now, the broader tone stays constructive for metals, mixed for commodities, and cautious for USD-linked pairs as investors digest the full impact of the Fed’s policy move.

Ready to trade global markets with confidence? Join Moneta Markets today and unlock 1000+ instruments, ultra-fast execution, ECN spreads from 0.0 pips, and more! Start now with Moneta Markets!