12.12 Gold Morning Review Precious Metals Strongly Rally Silver Hits Historical High
On December 12, during the Asian market's early session, spot gold fluctuated around $4280 per ounce. After the Federal Reserve's rate cut was implemented, the precious metals sector strengthened across the board on Thursday, with gold prices climbing to $4285.75 per ounce, refreshing a high not seen in over a month; silver even broke through historical extremes, reaching a high of $64.28 per ounce.
By the close, spot gold rose by 1.2%, settling at $4285.75 per ounce, marking a new high since October 21; gold futures saw an increase of 2.1%, with a settlement price fixed at $4313 per ounce. Spot silver soared nearly 4%, closing at $64.22 per ounce, with an intraday peak of $64.28 per ounce rewriting historical records.
The surge in precious metals is primarily driven by the U.S. dollar index dipping to an eight-week low, significantly enhancing the attractiveness of gold and silver assets priced in dollars to overseas funds, combined with silver leading the rally boosting sector sentiment. Analysts indicate that the rate cut operations in the context of inflation not meeting targets provide substantial support for gold.
During the same period, U.S. crude oil traded around $57.93 per barrel, facing dual pressure from geopolitical fluctuations and excess U.S. fuel inventories, resulting in oil prices being pressured downwards on Thursday.
Gold Price Review and Intraday Trading Strategy
On Thursday, gold experienced fluctuations during the day, with a strong rally in the night session, prices dipping to around 4204 and peaking near 4286.
Currently, gold continues its upward trend, with the trading strategy primarily focused on buying on dips. Key resistance levels to watch are 4297, 4317, 4341, and support levels to note are 4264, 4251, 4237.
Intraday trading suggestions:
Buy on dips near 4269, stop loss at 4261, short-term target at 4300, target 4320.
Buy on dips near 4255, stop loss at 4244, same target as above.
