Market Analysis: On December 11, the Federal Open Market Committee (FOMC) announced a 25-basis-point cut in the federal funds rate to 3.50%–3.75%, in line with market expectations. Following the decision, the U.S. dollar index fell sharply, hitting a low of 98.59—its lowest level in nearly a month and a half—before closing at 98.65, down approximately 0.6%, marking its largest single-day decline in nearly three months. The 10-year U.S. Treasury yield also dropped by 0.88 percentage points to 4.192%, recording its steepest one-day decline in over a month.
Amid the weakening dollar and Treasury yields, spot gold quickly rebounded after dipping to a low of $4,182, surging to a three-day high of $4,238.59 per ounce before settling at $4,228.47, up 0.5% for the day. Spot silver outperformed, breaking through and holding above the $61 threshold to reach a record high of $61.94, bringing its year-to-date gain to 113%. Investors should monitor further market reactions to the Fed's decision and shifts in monetary policy expectations. Today’s U.S. trade data and initial jobless claims will also be key focus points.
Gold Technical Analysis: After bullish setups on Monday and Tuesday, gold surged as expected late Wednesday, peaking near $4,248. The current outlook remains unchanged—maintain a bullish stance with potential targets at $4,265 and $4,285 by week’s end.
Technically, the daily chart shows three consecutive small bullish candles, indicating steady upward momentum with significant room for further gains. The upper Bollinger Band suggests resistance near $4,285. The H4 chart shows strength but lacks a clear breakout, leaving room for a pullback today. A deeper retracement could signal consolidation, while a shallow dip may present buying opportunities. Key support lies at $4,220; holding above this level suggests continued strength, while a break could extend the consolidation phase into Thursday and Friday.
Silver Technical Analysis: Silver opened higher yesterday, reaching $61.6 before retreating to a low of $60.07. A late Fed-driven rally pushed prices to a record $61.94, with the session closing at $61.82—a long-legged bullish candle. Today’s strategy recommends buying dips at $61, with a stop-loss at $60.75 and targets at $61.5–$62.3 and $62.5–$62.8.
Disclaimer: The content is for informational purposes only and does not constitute investment advice. Investors should exercise caution and manage risks accordingly.
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