Market Insight: On December 12, gold, as a traditional safe-haven asset, shone once again amid global economic uncertainty. On Thursday (December 11), gold prices staged a strong rebound following the Federal Reserve's third consecutive 25-basis-point rate cut. Spot gold rose 1.2%, hitting a one-month high of $4,285.75 per ounce, while silver surged to a record high of $64.31 per ounce. This rally in precious metals was driven not only by a weaker dollar and persistent inflationary pressures but also by anticipation of the upcoming non-farm payrolls report and global geopolitical tensions. Investors are closely monitoring how these factors will collectively influence gold's future trajectory. Based on this analysis, the gold market is at a critical juncture—breaking above the $4,300 resistance level could signal the start of a new bullish cycle.
Gold Technical Analysis: Thursday's analysis emphasized that gold's bullish trend remains intact, though not necessarily in an extremely strong phase. After testing the support level at $4,204, prices rebounded and extended gains, breaking this week's high to reach $4,285. If this momentum continues, gold could enter a strong unilateral uptrend. Currently, gold may extend its gains on Friday, with key resistance levels at $4,300 and $4,350.
Technically, the most notable change on Thursday was the H4 chart. The daily uptrend remains unchanged, but the shift from small to large bullish candles indicates stronger buying momentum. The upper Bollinger Band resistance stands at $4,300, with further upside potential toward $4,350 and $4,385. As the rally gains traction, the H4 Bollinger Bands have expanded, forming a unilateral moving average uptrend. While the upward move may appear moderate, the H4 chart suggests a robust unilateral trend. Therefore, traders should consider buying on dips near the H4 moving average support. Key intraday levels to watch are $4,250 and $4,232. If prices hold above $4,250 during the Asian and European sessions, further upside toward $4,300 is likely. A drop below $4,250 could see support at $4,232, offering another buying opportunity with a target of $4,285. However, given Friday's tendency for profit-taking after Thursday's breakout, a break below $4,232 would invalidate the extreme bullish scenario.
Silver Technical Analysis: Silver opened lower yesterday but rebounded strongly from a low of $61.4, peaking at $64.3 before consolidating. The session closed near $63.56, forming a large bullish candle with a slightly longer upper shadow. Today, silver remains biased toward further gains. The recommended strategy is to buy on dips at $62.7, with a stop-loss at $62.45, targeting $64–$64.4 and $64.8. A breakout above these levels could extend gains toward $65–$65.6.
Disclaimer: The content is for informational purposes only and does not constitute investment advice. Investors should conduct their own risk assessment before trading.
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