Precious Metals Market Update: 12/16/2025

Precious metals markets paused for a breather on Tuesday, December 16, 2025, following Monday’s sharp rally. Prices for both gold and silver drifted slightly lower in choppy trading as investors squared positions ahead of the Federal Reserve’s pivotal interest rate decision scheduled for Wednesday. While the broader uptrend remains intact, Tuesday’s session was defined by consolidation and technical repositioning.

After Monday’s surge, the precious metals complex faced mild selling pressure. Gold struggled to maintain momentum above the $4,330 mark, pulling back to test support levels, while silver gave back a fraction of its recent gains but remained resilient above $63.00.

Trading volumes were lighter than usual, a typical characteristic of markets awaiting a major central bank announcement. The "wait-and-see" approach dominated sentiment, with neither bulls nor bears willing to commit aggressively before the Federal Open Market Committee (FOMC) concludes its two-day meeting.

Key Drivers: Housing Data and Fed Jitters

Economic data released on Tuesday offered a mixed view of the U.S. economy, further complicating the picture for the Fed.

• Housing Starts & Building Permits: The Commerce Department reported that housing starts fell 1.5% in November, missing expectations. However, building permits—a leading indicator—ticked up slightly, suggesting some resilience in the construction sector despite elevated financing costs.

• Industrial Production: Industrial production numbers for November came in flat (0.0%), reinforcing the narrative of a cooling manufacturing sector highlighted by Monday’s Empire State Manufacturing miss.

The mixed data failed to provide a clear directional catalyst for the U.S. Dollar Index (DXY), which hovered near 98.50. This lack of dollar movement left metals drifting on technical flows. The primary focus remains firmly on the Federal Reserve; markets are currently pricing in a high probability of a 25-basis point rate cut tomorrow, but the accompanying Statement of Economic Projections (the "dot plot") will likely be the true market mover.

Technical Analysis: Defining the Ranges

Tuesday’s price action helped define clear trading ranges for the remainder of the week.

• Gold: The pullback to $4,295 is viewed by technical analysts as a healthy retracement. Immediate support lies at $4,288, with a stronger floor at $4,270. On the upside, bulls need to reclaim $4,330 to target the year-to-date highs near $4,353. The MACD histogram on the 4-hour chart is showing signs of flattening, consistent with a consolidation phase.

• Silver: Silver continues to show relative strength, holding the bulk of Monday’s breakout gains. Resistance remains formidable at $65.00. A "bull flag" pattern appears to be forming on the hourly charts; a breakout above $64.20 could signal the next leg higher. Investors interested in physical accumulation should monitor the $62.50 zone as a potential entry point for silver rounds.

Forward-Looking Commentary: The Fed Decision

All eyes are now on Wednesday, December 17th.

• FOMC Announcement (2:00 PM EST): The Fed is widely expected to announce a rate cut, but the language regarding 2026 will be critical. A "dovish cut" (cutting rates while signaling more to come) would likely ignite a fresh rally in gold bars and silver. Conversely, a "hawkish cut" (cutting but signaling a pause) could trigger a short-term sell-off.

• Powell Press Conference (2:30 PM EST): Chair Jerome Powell’s comments on labor market softness versus sticky inflation will be dissected by algorithms and traders alike.

For long-term investors, the current volatility underscores the value of precious metals as a hedge against policy uncertainty. With the debt ceiling debate also looming later this month, holding tangible assets like platinum coins remains a favored strategy for risk management.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Market data and prices are subject to change.