In the early trading session on December 8, the precious metals market took off. Spot gold surged past $4,200 per ounce, while silver held firmly above $58—this rally came fast and fierce.

There are three driving forces behind this surge, all acting at the same time.

First, let's talk about the Federal Reserve. The interest rate decision is coming up on December 11, and the market is now pricing in an over 86% probability of a 25-basis-point rate cut. Once a rate cut is implemented, the appeal of non-yielding assets like gold will instantly spike—lower holding costs will naturally attract more capital into the sector. More importantly, this could set a precedent for a global easing cycle in 2026.

Next, take a look at central banks around the world. China's central bank has increased its gold holdings for 13 consecutive months, adding another 0.93 tons in November, bringing the total to 2,305 tons. Global central banks purchased 220 tons of gold in the third quarter alone, hitting a new record. The trend of "de-dollarization" is becoming increasingly obvious, and gold’s status as a reserve asset continues to rise.

Silver is even more dramatic. The photovoltaic industry alone accounts for 55% of demand. New energy vehicles use seven times more silver per vehicle compared to traditional gasoline cars, and silver consumption in AI servers has increased by 30%. Explosive growth in industrial demand is widening the supply gap, naturally driving prices higher.

With these three factors resonating together, the precious metals bull market isn’t over yet. The next key moment is whether the Fed can deliver the expected rate cut—this is the critical point to watch.