The markets experienced a surge in positive momentum after the Federal Reserve delivered its strongest indications yet of a forthcoming pivot to easing monetary policy in the coming year.
For the first time since March 2021, Federal Open Market Committee (FOMC) officials projected no further interest-rate hikes.
Notably, the fed funds rate was forecasted to be at 4.6% by the end of the next year, signalling a potential 75 basis points rate cut—well below previous projections of 5.1%.
the US Dollar slid to 101.77, and US 10-year treasury yields dipped below 4% for the first time since August.
Amidst these market dynamics, COMEX Gold surged to $2062.9/oz and Siler traded as high as $24.59/oz, benefiting from rising bets on a reduction in borrowing costs in March that weighed on treasury yields
Crude oil also experienced positive trends, gaining support from an improved global demand outlook after IEA and OPEC report and significant US inventory drawdown.
Base metals received a boost from the relaxation of home purchase restrictions in Beijing
Looking ahead, market focus will turn to flash PMI, US GDP and Core PCE data prints. Additionally, the Bank of Japan's monetary policy decision will be eagerly awaited.
Markets will keep a close eye on China for additional support measures