On December 10, the strong momentum in the precious metals market continued to solidify, with gold and silver prices buoyed by technical buying during mid-session trading. The February gold contract rose to approximately $4,244.40, while the March silver contract hit a fresh all-time high of $61,055. Both short- and medium-term trends remain firmly bullish, supported by strengthening technical indicators that have fueled sustained buying interest. GTC Zehui Capital noted that this rally is driven by multiple factors, including capital inflows, rising volatility, and safe-haven demand.
This week's FOMC meeting has become a key market focus, with around 90% of participants anticipating a 25-basis-point rate cut. However, GTC Zehui Capital emphasized that the real market-moving factors will be the policy statement's wording and the tone of the subsequent press conference. With producer price data unexpectedly delayed, uncertainty over persistent inflation has increased, prompting a reassessment of the policy path and a rise in hawkish expectations. As markets adjust their policy pricing, equities showed modest midday gains but remained cautious overall. Meanwhile, the dollar index edged higher, crude oil hovered near $58.25, and the 10-year Treasury yield stabilized around 4.15%, signaling a rebalancing macro environment.
From a trading perspective, precious metals pricing relies on both spot and futures markets, with year-end liquidity tightening amplifying contract rollovers and positioning shifts. Currently, December gold futures remain the most liquid contract, reflecting accelerated institutional positioning ahead of the delivery period. Technically, GTC Zehui Capital highlighted gold's upside target at the record high of $4,433, with key support at $4,100. Short-term support and resistance levels stand at $4,197.80 and $4,285, respectively. Silver exhibits even stronger bullish momentum, with a clear daily flag pattern pointing toward $6,250, while support lies between $5,900 and $5,685, indicating higher volatility and a more pronounced trend.
In summary, GTC Zehui Capital views the precious metals rally as a convergence of fundamental expectations, macroeconomic uncertainty, and technical strength. As the FOMC meeting approaches, market volatility may intensify, but the bullish structure for precious metals remains intact in the near term. For medium-term investors, the focus should be on whether policy guidance triggers a repricing of rate expectations, while traders should watch for breakout opportunities and manage risks amid expanding price swings.
