Gold and silver prices rose during the US midday trading session on Wednesday (December 3), with silver hitting a new record high, approaching the $60 per ounce mark. Silver held onto its overnight gains after weaker-than-expected US economic data was released, while gold continued its upward trend from a slight overnight rise. Midweek, speculative technical buying was also very active, with both markets showing strong bullish short-term chart patterns. February gold futures (about $40 above spot gold) were trading at $4250.80 per ounce, up $30; March silver futures were trading at $59.06 per ounce, up $0.347.



The November US ADP monthly employment report showed a decrease of 32,000 jobs, compared to market expectations of a 40,000 increase. Given the delayed release of official US employment data, the importance of this ADP report is further highlighted. This data is favorable to the "dovish" camp advocating for an early cut in US interest rates.

The benchmark 10-year U.S. Treasury yield remained around 4.08%, its recent upward trend temporarily halted as investors closely weighed the Federal Reserve's policy outlook. The market currently anticipates an 89% probability of a 25-basis-point rate cut at next week's Federal Open Market Committee (FOMC) meeting, and projects a cumulative rate cut of approximately 0.9% by 2026. Widespread expectations that White House economic advisor Kevin Hassett may be nominated as the next Fed chair have further reinforced dovish sentiment in the market. Hassett is previously known for supporting a faster pace of rate cuts and aligning his position with President Trump.

In key external markets today, the US dollar index fell to a three-week low; crude oil prices rose, trading around $59.50 per barrel.


(COMEX Gold Daily Chart Source: FX678)

From a technical perspective, the next upside target for February gold futures bulls is a close above the key resistance level – the contract's all-time high of $4,433.00 per ounce. The short-term downside target for bears is to push futures prices below the key technical support level of $4,100.00 per ounce. The first resistance level is at $4,300.00 per ounce, followed by $4,350.00 per ounce; the first support level is at $4,200.00 per ounce, with subsequent support at Tuesday's low of $4,194.00 per ounce.


(COMEX silver daily chart source: FX678)

March silver futures bulls hold a clear overall advantage in the short-term technicals, with their next upside target being a closing price break above the key technical resistance level of $60.00 per ounce. Bears' short-term downside target is to push the closing price below the key support level of $55.00 per ounce. The first resistance level is today's contract high of $59.655 per ounce, followed by $60.00 per ounce; subsequent support is seen at $58.00 per ounce, and further down at this week's low of $56.85 per ounce.

Note: The gold market operates primarily through two pricing mechanisms. The spot market offers prices for immediate purchase and delivery; the futures market determines prices for delivery on a specific future date. Due to year-end position adjustments and market liquidity, the most actively traded gold futures contract on the Chicago Mercantile Exchange (CME) is currently the December contract.