As the financial markets opened recently, there was a dramatic shift in the prices of key commodities, particularly precious metals like gold and silverGold slumped to an alarming low of 2583, and silver dipped to 29.2. This unexpected downturn caught many investors off guard, especially considering the prevailing sentiment leading up to the Federal Reserve's latest interest rate decision, which many anticipated would result in a downward trend for goldHowever, the scale of the drop was more severe than most had imaginedWith both gold and silver showing signs of significant weakness, market watchers are keenly observing the outcomes of trades on Thursday and FridayShould the downward trend persist, it might signal a one-sided market movementConversely, any effective rebound could lead to a phase of adjustment followed by consolidation.

Late at midnight, the Federal Reserve's monetary policy announcement was made public, confirming market expectations

The Fed decided to cut interest rates by 25 basis points, which prompted an immediate surge in the US dollar to 108. In response, gold plummeted to 2583 as the certainty of the rate cut was establishedMarket participants are now awaiting the decisions from the Bank of Japan, where Governor Kazuo Ueda will hold a press conference on monetary policy, alongside the Bank of England releasing their rate decisions and meeting minutesThese developments are critical as they could further ripple through the global markets.

While the Federal Reserve's interest rate cut of 25 basis points aligned with market forecasts, the underlying projections suggested a more cautious approach to quantitative easing in the futureFollowing the announcement, the dollar saw a notable rally to 108, a high that analysts had pointed towards for some time

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On Wednesday, this anticipated rise materialized, which set the stage for Thursday and Friday to act as critical days to gauge the sustainability of this uptickAs the dollar strengthened, gold experienced a steep declineThis dynamic can largely be attributed to two factors: the market had largely priced in expectations for rate cuts, leaving little buying support for gold, and the dollar's rise hindered any upward momentum for gold pricesThus, the extent of gold's decline, dropping to 2583, was perhaps justified, although earlier predictions had assessed a lower threshold around 2600 to 2630. Moving into Thursday and Friday, market performance is uncertain, and further observation over the coming days is necessary to draw conclusions.

Referring to the charts, Wednesday's significant drop closed the trading day with a pronounced bearish candle, with the K-line resting near the lower Bollinger band—a critical support level

This point is particularly sensitive; should the decline persist, it could lead to a more pronounced one-sided market movementConversely, should the market show any signs of an upward trend on Thursday and Friday, it might close the daily Bollinger band, potentially leading to a rebound and subsequent consolidationTherefore, it’s tough to establish the directional movement of gold during this periodHowever, one certainty is that Wednesday's drop has placed considerable downward pressure on gold, indicating weakness for ThursdayIf this trend continues, previous support at 2535 must be watched closelyShort-term charts exhibit a clear downward trend, with the H4 timeframe still indicating more potential for declinesKey resistance levels are noted at 2605 and 2620; below 2605, the market is deemed extremely weak, while falling below 2620 establishes a bear market sentimentEven if a bearish stance is taken on Thursday, it should not be pursued blindly without waiting for a bounce back for short positions

Therefore, immediate focus should be placed on testing the resistance points at 2605 and 2620. However, should a robust rebound occur, it presents an opportunity for long positions, especially if the market stabilizes above 2620, possibly leading to a further rise to 2660.

In the realm of silver trading, clear indications were given about the continuing downward momentum, with anticipation for another decline extending to 29.5. Following the Fed's rate decision and the resultant market shifts, silver hit a low of 29.2, breaking below the previous low of 29.5—an area considered significant for forming a double bottomYet the ability for bears to sustain their momentum remains under scrutinyRather than fixate solely on positions today, it's imperative to analyze price movements and patterns critically

Prior to the US markets opening, if silver fails to persist with further declines and manages to rebound above 29.5, it could represent a turning point, presenting an opportunity to capitalize on a long positionTherefore, it is advised to remain cautiously optimistic about silver rather than aggressively bearish.

Regarding oil market dynamics, the recent roll-over to the OIL-G25 contract is pivotalFollowing the turbulent trading session on Wednesday, oil settled around 69.5. Observing the trends, oil has been attempting to breach the 71 mark without success, which has resulted in a high-level adjustmentAcknowledging the support level at the 69 low, the outlook on oil suggests a notable interpretation: should the 71/69 range hold firm, then expectations for bullish momentum would need to lessen