On Wednesday (December 18), in the Asian market midday, the price of Gold fluctuated around 2648 USD, with prices consolidating below the 50-day moving average. The Federal Reserve will announce its final interest rate decision for 2024 later, setting the tone for the USD and major Forex pairs, which remain firm before the announcement. Silver is consolidating near the upward channel.ResistanceThe EUR/USD is consolidating near long-term Resistance, awaiting the next trend.

The strong retail sales report from the USA in November intensified speculation that despite recent inflation increases, the Federal Reserve may not need to take significant rate cuts. According to the CME Fed Watch tool, the probability of a 25 basis point cut on Wednesday is 97%. Investors will still focus on the Summary of Economic Projections (SEP) and the dot plot, which outline the Federal Reserve's plans for 2025.

Traders are watching the Federal Reserve's decision, while the EUR/USD continues to consolidate below the 1.0600 mark. The PMI data for Europe in December slightly exceeded expectations, with the services PMI still in contraction, highlighting concerns about intensifying economic slowdown in the region. The market reacted calmly to comments from European Central Bank (ECB) officials, which put pressure on the euro and supported this trend. Traders are now waiting for clear directional clues from the Federal Reserve's policy statement.

On the other hand, the price of Gold remains in a state of consolidation before the Federal Reserve's decision. Expectations of a Fed rate cut support Gold, as lower rates reduce the cost of holding this non-yielding Metal.opportunity costHowever, the current market conditions, including strong economic data from the USA and inflation concerns, limit the upside potential for Gold. Investors are closely monitoring the Federal Reserve's policy outlook and core Personal Consumption Expenditures (PCE) price index data for further guidance.

The following is the latest analysis by FXEmpire Analyst Muhammad Umair regarding Gold, Silver, and EUR/USD.Technical analysis.：

Gold Technical Analysis

The daily chart of Gold shows that prices fluctuate around the 50-day moving average and remain above the 100-day and 200-day moving averages. The narrow Range consolidation in December may be due to weaker liquidity. Despite these fluctuations, the overall trend remains upward. The immediate Resistance is at 2720 USD, while 2790 USD is an obstacle for further increases in the Gold market. Today's Federal Reserve meeting may introduce strong volatility. However, to move higher, a breakout above 2720 USD is necessary. #Gold Technical Analysis#

(Source: FXEmpire)

These price consolidations are also evident in the 4-hour chart of Gold. The consolidation boundaries remain between 2615 USD and 2720 USD; breaking either level will provide further direction.RSIThe trend also reflects the consolidation of the Gold market. A breakthrough of 2720 USD may initiate a move towards the 2790 USD range.

(Source: FXEmpire)

Technical analysis of silver.

The daily chart for Silver shows that the price is trading within an ascending channel. The price is approaching the support area within the channel, around 29 USD, and breaking below this level may trigger a strong decline. A reversal appeared on Tuesday's daily chart, but the daily closing price remains below 30.70 USD, keeping the short-term trend neutral. The price is currently trading between the 50-day and 200-day SMA, indicating a lack of clear direction.

(Source: FXEmpire)

The 4-hour chart for Silver shows that the price failed to break through the Resistance level of $32.50 and declined. The price trend indicates a neutral movement within the Range of $29.60 to $32.50. The rebound of the RSI at lower levels suggests that Silver may find support around the $29.60 region. Due to weak liquidity, prices may remain neutral in December. The Federal Reserve's decision could trigger some volatility in Silver, but it requires breaking through $32.50 to move higher.

(Source: FXEmpire)

Technical analysis of EUR/USD.

The daily chart for EUR/USD shows that the price has been consolidating around the long-term Resistance level of $1.047. The recent consolidation Range remains between $1.047 and $1.06, while the USD fluctuates between 107 and 105.60. A break below $1.04 may trigger a long-term downtrend for EUR/USD, while a break above $1.06 could indicate a bottom and continue the upward momentum. The Federal Reserve's statement in today's monetary policy decision will affect the USD and EUR/USD pair. Breaking these levels is a necessary condition to determine the next movement for EUR/USD.

(Source: FXEmpire)

The 4-hour chart for EUR/USD shows that the currency pair is still within a downtrend channel and has failed to break through $1.06. The consolidation between $1.047 and $1.06 forms a Put outlook. To alleviate the bearish pressure, the currency pair must break through $1.06. Breaking this level will also break the downtrend channel, potentially bringing positive momentum.

(Source: FXEmpire)