2025-12-10 15:20:40
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Ahead of this week’s FOMC meeting, spot gold is trading in a tight range in Asia, holding firmly above 4,200 USD per ounce and fluctuating mainly between 4,205 and 4,218 USD. While markets have largely priced in a 25-basis-point rate cut, investors remain cautious about whether the post-meeting statement will lean “hawkish” or “dovish”. As short-term volatility narrows, the structural forces behind gold are quietly reshaping the market.
On one hand, gold ETFs are showing a “slight dip at high levels”. The latest data reveal that holdings of SPDR Gold Trust, the world’s largest gold ETF, have slipped to around 1,049 tons, marking two consecutive days of modest outflows, while gold prices continue to find dip-buying support in the 4,180–4,200 USD zone. Technical indicators suggest bullish momentum has cooled somewhat, with some short-term traders locking in profits before the decision, but the medium-term uptrend remains intact.
On the other hand, central banks’ appetite for gold is still strong, providing solid medium-to long-term support. As of the end of November, the People’s Bank of China’s gold reserves had risen to about 2,305 tons, marking the 13th consecutive month of net purchases. According to the World Gold Council, global central banks bought a net 53 tons of gold in October alone, a month-on-month increase of roughly 36%, extending this year’s robust buying trend. In an environment of high interest rates and elevated geopolitical uncertainty, continued “official sector” buying underscores gold’s strategic role in sovereign reserve portfolios.
Notably, silver’s performance this year has been even more eye-catching than gold’s. Reports highlight that silver has broken above 61 USD per ounce for the first time this year, with cumulative gains approaching twice that of gold. This reflects how, driven by demand from new energy, solar and related industries, the market is repricing silver’s dual identity as both an industrial metal and a precious metal.
Overall, as the Fed’s policy turning
point approaches and real interest rates may be peaking out, gold could
experience sharp short-term swings depending on the tone of the decision, but its medium-to-long-term bullish
structure remains supported by three key drivers: first, sustained central-bank buying that
reinforces gold’s role as a core
reserve asset; second, ETF and institutional investors trimming but not exiting
positions, implying an overall pro-gold allocation stance; and third,
the strong co-movement of silver and other precious metals, which adds an extra layer
of risk?on support to the entire segment. For investors, this Fed decision is
not only a short-term trading event, but also a key moment to reassess gold’s long-term role within
a diversified portfolio.
Upway Global: Trusted Partner Through Market Dynamics
Upway Global, a leader in global precious metals trading since 2010. Anchored in values of compliance, transparency, and investor protection, Upway Global has built a robust ecosystem of over 1.2 million active traders and processed more than 600 million orders, with a monthly trading volume surpassing USD 479 billion in 2025. As a main sponsor, Upway Global proudly supported this milestone, reflecting both our recognition by HKGX and our commitment to Hong Kong’s long-term role as a global hub for precious metals. Highlighted Hong Kong’s “one country, two systems” advantage and its Belt and Road opportunities, reinforcing the city’s position as a super-connector between East and West.
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