12.12 Gold Evening Review Morning gold target 4320, perfectly realized 54 points
Gold skyrocketed on Friday! Driven by expectations of continued easing from the Federal Reserve, spot gold rose for the fourth consecutive time, surging past $4310/oz during the European market, reaching the highest level since late October, with an intraday increase of over 0.7%; silver also did not lag behind, with prices nearing historical highs, gaining over 1% intraday.
This week, gold prices are highly likely to achieve an increase of over 2.5%! After the Federal Reserve cut interest rates on Wednesday, they didn't rule out further cuts, with possibilities next year. Although officials only expect one rate cut in 2026, traders are betting on two cuts. Low interest rates are favorable for gold, and with the Federal Reserve planning to buy $40 billion in Treasury bonds monthly, along with a three-day decline in the dollar, it's hard for gold prices not to rise!
Industry experts say the upward trend for gold is still intact! Even if CPI rises by the end of the year or early next year, causing a slight pullback, as long as the Federal Reserve does not tighten, the medium-term outlook remains bullish. Additionally, this year gold ETF holdings have nearly risen every month, and central banks are continuously buying, supporting this upward trend potentially until 2026.
From a technical perspective, after gold prices break through 4300, the next target is 4328-4330, and it can further challenge the historical high of 4380 in October; if it can stand above 4400, bulls will definitely go crazier!
