Yang Zhenjin: Will Gold and Silver Continue to Decline After Rebounding? Analysis and Trading Recommendations for Today's Market

Deep News13:30

Market Analysis: On December 15, gold prices performed strongly last Friday (December 12), with spot gold rising 0.48% to close near $4,300 per ounce, hitting an intraday high of $4,353—the highest level since October 21. U.S. gold futures also gained 0.4%, settling at $4,328.3. This upward momentum has bolstered confidence among gold bulls, especially after the Federal Reserve cut interest rates by 25 basis points for the third time last week, further fueling expectations of accommodative monetary policies.

Although the Fed has signaled caution regarding additional rate cuts pending more data, investors still anticipate two potential cuts next year, providing strong support for gold. As a traditional safe-haven asset, gold continues to attract inflows amid heightened global uncertainty. Investors are closely watching key economic data due this week, particularly the U.S. non-farm payrolls report scheduled for December 16. This report includes delayed October and November data due to the government shutdown and may offer clearer signals about economic health.

Gold Technical Analysis: Gold remains in a bullish trend this week, and unless significant changes occur, the outlook remains positive, with the previous high of $4,380 within reach. Early-week strength will be key. Opening above $4,300, gold shows clear dominance, maintaining the $4,350/$4,257 range from last Friday. Traders should focus on buying opportunities while monitoring resistance at $4,350 for potential pullbacks.

A drop below $4,250 this week could signal a shift in trend strength, possibly leading to mid-term adjustments (likely on Thursday or Friday). Thus, while early-week bullish momentum should be noted, excessive optimism is unwarranted, with resistance at $4,350 and $4,380, and support at $4,250. For intraday trading, gold’s early strength suggests continued upside, but chasing highs is risky. Key support levels at $4,285 and $4,270 offer buying opportunities.

Silver Technical Analysis: Silver peaked near $64.64 last week, closing above $62, maintaining its bullish outlook. However, traders should watch for potential shifts later in the week, with buying remaining the preferred strategy. Key support lies near $60. For trading, monitor support at $61 and $60, with resistance at $65—beyond which further upside is possible.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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