The Federal Reserve announced a 25 basis point interest rate cut
On December 11 at midnight Beijing time, the Federal Reserve announced a 25 basis point interest rate cut, lowering the target range for the federal funds rate to 3.5%-3.75%. Federal Reserve Chairman Powell stated that the Federal Reserve has been adjusting towards a neutral interest rate and is currently at the upper end of the neutral rate range, with no decision made regarding January matters.
The labor market seems to be gradually cooling down, and inflation levels remain high. The Federal Reserve is committed to achieving a 2% inflation target. If no new tariffs are announced, commodity inflation should peak in the first quarter of next year. Currently, raising interest rates is not a baseline expectation for anyone, and the current policy divergence lies in whether to maintain the interest rate or cut it.
Gold quickly rebounded after hitting a low point at 4182, forming a clear V-shaped reversal pattern. Currently, the J-line is approaching the 100 overbought zone, while the K-line and D-line are moving upwards in sync but with a slowing slope, indicating that while short-term bullish momentum still exists, the risk of a pullback due to overbought conditions is increasing, requiring vigilance against minor corrections at high levels.
Recommended Gold: Short on a rebound to the 4245-4255 area, targeting around 4180.
12.10 Gold Morning Review: Stalemate on the Eve of the Decision, Waiting for Breakthrough Signals in Range
Today, the market is focused on the Federal Reserve's interest rate decision. Gold is exhibiting a typical cautious fluctuation pattern before major risk events, with prices continuing to narrow around key ranges. Before clear directional breakthrough signals appear, the optimal trading strategy remains to sell high and buy low within the range, while being wary of sudden market movements following the convergence of fluctuations before the event.
Today's opening price performance is relatively weak, although it has temporarily stabilized above the 4200 mark. However, from a recent trend perspective, the support at this level is not unbreakable, and both bulls and bears lack clear momentum, resulting in a strong wait-and-see sentiment in the market.
Gold Suggestion: It is recommended to lay out short positions in the 4215-4225 range, targeting around 4170. During operations, closely monitor changes in market sentiment before the Federal Reserve decision and adjust stop-loss orders in a timely manner to control risks.
There are no dynamic days, it's just picking up gold. Mr. Li from Shanghai started with 60,000 dollars in just ten days, with no defeats,
and has steadily increased to over 67,300 dollars. When the market arrives, if you are still watching, you will only miss opportunity after opportunity!
The M country bank continues to be optimistic about gold, recommending that the bulk commodity sector will be the best hot trading opportunity next year. Michael Hartnett, Chief Investment Strategist at Bank of America, latest prediction: The global economy is shifting from the "monetary easing + fiscal tightening" model after the financial crisis to a new paradigm of "fiscal easing + de-globalization" after the pandemic.
Gold is currently still trapped in a volatile pattern, with no obvious one-sided trend, and the market is waiting for the Federal Reserve's interest rate decision early Thursday morning; the direction is likely to become clear only after the data is released.
Yesterday, the short position around 4220 has profited as expected! Currently, the 1-hour chart is fluctuating back and forth; within the range, remember not to chase highs and kill lows: the short-term resistance above is 4220, which can continue to sell high under pressure in the morning; below, pay close attention to the support zone of 4140-4120, and if it stabilizes, a small position can be taken to bet on a rebound.
Right now is the calm before the storm; patiently trade within the range and wait for the interest rate decision to trigger a big market movement!