December 11 gold outlook: 4250 has become the new key resistance level. Once effectively broken, it will open up space towards 4275!
The Federal Reserve lowered interest rates by 25 basis points as expected, aligning with market consensus. However, this decision revealed the largest internal disagreement of the year and sent a hawkish rate cut signal, with the market expecting only one more rate cut in the next two years. As this signal did not exceed the market's prior digestion range, gold prices initially fell and then rose, breaking through the key level of 4230 after Powell's speech. Lin Ruizhe believes that if upcoming non-farm and CPI data can confirm a cooling labor market and effective control of inflation, gold and silver are likely to start a new upward trend.
In the morning session, gold saw a technical pullback after a spike, which is a common consolidation process after breaking through key price levels. The current price has stabilized above the key support level of 4200 and has successfully surpassed yesterday's resistance level of 4230, remaining in an overall bullish framework.
From a technical perspective, 4250 has become the new key resistance level. Once effectively broken, it will open up space towards 4275; the support level at 4208 resonates with the 4-hour moving average system, providing strong technical support.
Lin Ruizhe gives operational advice, maintaining an overall bullish approach on pullbacks. Long positions can be arranged near or above 4208, with 4198 as the stop-loss level. The initial target is the 4230-4250 range, and if it breaks through, further targets are set towards 4275.
