World gold prices on the morning of December 11 increased slightly by about 2030 USD/ounce compared to the previous price, bringing gold to the above 4,242.6 USD/ounce range this morning, after the US Federal Reserve (Fed) officially cut interest rates by 0.25 percentage points. Meanwhile, silver continued to break out strongly, maintaining around a new record of more than 61 USD/ounce.
The decision to cut interest rates came after a two-day meeting of the Federal Open Market Committee (FOMC). Accordingly, the Fed reduced the operating interest rate range to 3.50 - 3.75%, as investors predicted. In the announcement, the Fed said inflation remains persistent at a moderate level, and said it is in no rush to make any new short-term cuts.
After the above decision, global investors are waiting for Fed Chairman Jerome Powell's speech, expecting him to provide more monetary policy orientation in 2026. The market is now predicting that the rate cut cycle could stagnate for the Fed to further assess the policy's impact on growth and inflation.
In outside markets, the USD index decreased slightly, while international crude oil prices increased around 58.50 USD/barrel. The yield on the 10-year US Treasury note was 4.166%, showing market sentiment remains stable, although the Fed has shifted to an loose policy.
Gold prices have not broken out, but the uptrend is still overwhelming
Technical analysis shows that the upward trend of gold is still dominant, although the market temporarily moved sideways after a series of strong increases. According to Kitco, the next bullish target is to push the closing price above the strong resistance level at $4,433/ounce - the current record high. On the contrary, the sellers are aiming to pull prices below the support zone of 4,100 USD/ounce.
The nearest resistance zone was determined at 4,251.70 USD, then 4,285 USD; while the first support zone was at 4,197.80 USD and then up to 4,150 USD. The Wyckoff Market Rating reached 7.0/10, reflecting that the uptrend was still maintained but the short-term momentum slowed down.
Experts say gold is consolidating around $4,200/ounce before breaking out if the Fed signals stronger easing next year. On the other hand, a weak US dollar and falling bond yields are supporting gold prices to maintain their current highs.
In general, the trading session on December 11 showed that the precious metal market remained stable after the Fed acted as expected. Investors are now paying attention to Chairman Jerome Powell's speech, which could give a clearer direction to interest rate cuts in 2026.
In the short term, gold maintains a moderate uptrend, while silver continues to stand out thanks to strong technical uptrend. Both precious metals are reflecting expectations that a looser monetary policy will continue a factor that could maintain the attractiveness of the safe-haven group in the coming time.
