Bybit x FXStreet TradFi Report — Gold and silver poised to shine as Fed prepares first rate cut

Key Highlights:

• Fed expected to cut the interest rate from 4.5% to 4.25% on Wednesday

• Market pricing in a 70% chance of rates at 3.75% by year end

• Weak US jobs data raises expectations of further cuts and monetary support

• Gold and silver are benefiting from lower interest rates and a rising money supply

• Technical breakout patterns signal further upside for both metals

Trade gold with Bybit here.

Macroeconomic environment: Fed cuts, weak jobs and liquidity pressure

The Federal Reserve is widely expected to announce its first interest rate cut of the year this Wednesday, reducing the benchmark rate from 4.5% to 4.25%. Markets are also anticipating forward guidance from Fed Chair Jerome Powell, particularly regarding the potential for further cuts in November and December.