On December 9, during Monday's U.S. trading session, both gold and silver prices declined. GTC Zehui Capital noted that despite expectations of a Fed rate cut this week, concerns over a potentially hawkish monetary policy stance have weighed on the precious metals market. Additionally, the delayed release of U.S. Producer Price Index (PPI) data for October and November, now postponed to January next year, has heightened uncertainty around inflation trends.

Data showed February gold futures settled at $4,215.50, down $27.60, while March silver futures closed at $58.28, dropping $0.788. GTC Zehui Capital highlighted that short-term price volatility in precious metals will likely be driven by Fed policy expectations and the delayed inflation data.

The Federal Open Market Committee (FOMC) will begin its policy meeting on Tuesday morning, with a statement and press conference by Fed Chair Jerome Powell scheduled for Wednesday afternoon. Markets widely anticipate a 0.25% rate cut, but GTC Zehui Capital cautioned investors to watch for potential hawkish signals in the statement and Powell’s remarks, particularly regarding persistent inflation, which could dampen precious metals' upward momentum in the near term.

Globally, the World Bank reported on Sunday that central banks continue to increase gold reserves, with one institution adding 30,000 ounces last month—marking its 13th consecutive month of accumulation—bringing total holdings to approximately 74.12 million ounces. GTC Zehui Capital views this trend as long-term support for precious metals amid a complex macroeconomic backdrop. Meanwhile, a stronger U.S. dollar, weaker crude oil prices (around $59.25/barrel), and the 10-year Treasury yield near 4.15% are collectively influencing market sentiment.

Technically, February gold futures face a bullish target of breaking the all-time high at $4,433, while bears aim for support near $4,100. Immediate resistance levels are at $4,247.90 and $4,285, with support at $4,200 and $4,150. GTC Zehui Capital noted that prices may remain range-bound, but a breakout above key resistance could renew upward momentum. For March silver futures, technicals favor bulls, with a bullish flag pattern on daily charts pointing to a target above $60, versus bearish support below $55. Resistance sits at $59.90 and $60, with support at $57.77 and $56.85. While silver retains short-term upside potential, investors should monitor technical support levels closely.

In summary, GTC Zehui Capital suggests the precious metals market is balancing policy expectations and technical factors. A potentially hawkish Fed, delayed inflation data, and central bank gold accumulation may drive near-term volatility. Investors should prioritize risk management and track key support/resistance levels to navigate potential market swings.