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The Final Trade Idea Of 2024! [XAG/USD Bid]
Welcome to late-week trade! It’s been a challenging day for traders as the markets continue to digest Jerome Powell’s epic December Fed presser. US stocks have bounced back a bit, but remain in bearish territory. On the other hand, commodities continue to show weakness. The big story has been the washout in silver beneath November’s low (29.64).
The 18 December Fed Announcements was one for the record books. The FOMC decided to cut interest rates by 25 basis points, although the reasoning for such a cut remained obscure. Citing a strong economy but persistent inflation, Fed Chair J. Powell stressed the need for progress on inflation before further rate cuts:
“I think the actual cuts that we make next year will not be because of anything we wrote down today. We’re going to react to data; that’s just the general sense of what the committee thinks is likely to be appropriate.”
So, the Fed is data-dependent. If nothing else, monetary policy uncertainty is on the uptick and destined to run the markets in 2025. This may mean a lot of things for silver; in the short term there is a key support zone on the radar for the XAG/USD:
13-Month EMA, 28.54
Monthly 78% Retracement, 28.30
Be sure to check out our Key Levels for details on this Trade Idea.
Well, that’s a wrap for 2024. We’ll be back on 2 January 2025 to begin trading the new year. Have a great Holiday Season, and we look forward to seeing you in 2025!
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