On the morning of December 16, gold trading in the Asian market is experiencing minor fluctuations, hovering around $2651.30 per ounceAfter reaching a high of $2726.05 last Thursday, its highest in over five weeks, gold prices saw some profit-taking, which continued to decline on Friday, hitting a low of approximately $2646, marking the lowest in a weekThe persistent rise in US Treasury yields, which hit a three-week high, has further pressured gold prices.

At last week’s policy meetings of major central banks, the European Central Bank lowered interest rates by 25 basis points, while the Bank of Canada and the Swiss National Bank implemented a 50 basis point cutAlthough the Reserve Bank of Australia maintained its key overnight cash rate, it also signaled a potential easing in its previous hawkish stance

This week, market attention is turning to the Federal Reserve's interest rate decisionDespite US inflation and labor market data from last week not altering expectations for a Fed rate cut next week, the market perceives a slightly more hawkish stance from the Fed, indicating a potential pause in rate cuts for January as it assesses inflation prospects and labor market strength.

Data from last Thursday indicated that the employment market is cooling down gradually, in line with expectations, while producer price inflation supports the market’s current assumption that the Fed will reduce rates on December 18. However, rate cuts may slow down in 2025. The yield on the 10-year US Treasury bond rose to a three-week high last Friday, with market predictions for a 25 basis point cut this week, but also a signal indicating a pause on any further cuts

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The Fed is striving to manage inflation levels that have exceeded its annual target of 2%.

Given the myriad of factors needing evaluation, renewed risks emerging, and significant uncertainty, many analysts anticipate that the Fed’s policy statement, Chairman Powell’s press conference, and updated forecasts post-meeting will lean towards a hawkish toneCompared to several months ago, the Fed seems closer to pausing rate cuts—or at the very least, less willing to commit to further reductions.

Analysis of the Gold Market on December 16:

Gold opened at around $2680 on the last trading day, with a slight rebound that pushed prices up to a daily high of $2693 before beginning to decline

Throughout the European and US trading sessions, prices consistently fell, ultimately hitting a daily low of about $2646, a strong support levelThe daily chart indicates that the Bollinger Bands are flattening, with both the MA5 and MA10 moving averages showing signs of stabilization around the middle bandThe MACD energy bars are gradually reducing, while the KDJ indicator is exhibiting a bullish crossoverIn the grander scheme, we are witnessing a high-level pullback, suggesting potential increases today, leading to a low buy strategy as prices are expected to rise.

Gold Trading Recommendations for December 16:

1. Buy near 2644/2646 with a stop loss at $6.5, targeting $2660—$2676—$2690;

2. Buy anytime when testing 2628/2630, stop loss at $6.5, targeting $2642—$2660;

3. Sell near 2690/2692 with a stop loss at $6.5, targeting lower at $2680—$2665;

Analysis of the Silver Market on December 16:

Silver opened at approximately $30.98, establishing itself as a resistance level before beginning to decline

Prices continued to drop through the European session, reaching a daily low of around $30.29 during the US session before stabilizing at the close, resulting in a bearish daily chartThe daily analysis suggests the Bollinger Bands are becoming flat, with MA5 and MA10 lines showing signs of stabilization around the mid-rangeAs MACD energy bars shrink, the KDJ shows a bullish crossoverExpectations for today lean towards a rebound from the support level, favoring low buys.

Silver Trading Recommendations for December 16:

1. Buy near 30.32/30.45 with a stop loss at $30.12, targeting $31—$31.56—$32;

2. Anytime a test of 29.64/29.78 occurs, buy with a stop loss at $29.43, targeting $30.25—$31;

3. Sell near 31.85/32 with a stop loss at $32.25, targeting lower at $31.43—$31;

Analysis of the Crude Oil Market on December 16:

Crude oil opened at around $69.7, and after a slight test of support at $69.5, began a rebound

The European session saw an upward turn and continued to rise during the US session, culminating in a daily high near $70.9 and closing with a strong bullish trendDaily analysis indicates the Bollinger Bands are trending upwards, with K-line near the upper bandBoth MA5 and MA10 lines indicate an upward trend from the middle band, while MACD energy columns expandThe KDJ shows a bullish crossover, implying a potential rebound todayWith a strong support level in place, a low buy strategy should prevail.

Crude Oil Trading Recommendations for December 16:

1. Buy near 69.8/70 with a stop loss at $69, targeting $71.4—$73—$75.2;

2. Buy anytime testing 68.5/68.7, stop loss at $67.5, targeting $70—$72;

3. Sell near 74/74.2, stop loss at $75, targeting lower at $73—$71.5;