Lu Kaifeng: Rate Cut Triggers Resistance Level, Gold Continues Bullish Breakout

On December 11, the international spot gold price has maintained a full three-week consolidation phase, failing to break above the 4260 resistance level while testing support near 4170, with a stronger floor around 4160. Gold remains steady, primarily due to lingering risk-off sentiment that has yet to fully ignite. In contrast, silver has repeatedly broken new highs, firmly holding above the key 60 level and gaining momentum. Meanwhile, gold has remained stagnant.

Despite the overnight Federal Reserve interest rate decision, gold still couldn’t achieve a decisive breakout, showing weak upward momentum. However, it is unlikely to fall below the 4000 psychological level again, having already completed a bottoming and recovery structure. The next step is simply awaiting a breakout.

Technically, gold briefly dipped to 4180 overnight. The four-hour chart shows the price still confined within a triangular consolidation, with downward trendline resistance at 4253. A strong push to this level could present a short-term selling opportunity. On the moving average front, the 5-day and 10-day MAs are converging, with the current price holding above the 5-day MA at 4203, indicating relative strength.

On the daily chart, gold is undergoing a third-wave correction, with the next major resistance at 4384. Intermediate resistance levels stand at 4247 and 4346—only after breaking and holding above these can gold challenge 4384. Recent price action has been muted, with the market remaining cautious rather than aggressively positioning.

While silver has already broken out twice, its rally has been substantial. For new long positions, a pullback to 59.85 would offer a better entry point. The outlook remains bullish for silver, with further upside potential ahead.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Investors should conduct their own risk assessments.