Gold and silver prices rose in the early U.S. session on Thursday, with gold prices not far from Wednesday's record high and silver prices hitting a two-month high.

After the U.S. central bank's significant interest rate cut led to a weaker dollar, precious metal bulls are enjoying the sunshine.

December gold rose by $13.80 to $2,612.40, and December silver rose by $0.873 to $31.56.

The Federal Reserve cut interest rates by 0.5% on Wednesday and indicated further rate cuts, with global traders and investors in an optimistic mood.

A headline in The Wall Street Journal today reads: "Fed's Bold Moves Ripple Through Global Markets."

Asian and European stock indices mostly rose overnight.

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U.S. stock indices opened steadily higher at the start of the New York day.

In overnight news, the Bank of England kept interest rates unchanged at its monetary policy meeting after cutting rates in August.

The Bank of England did signal further rate cuts.

Thousands of pagers used by Hezbollah militants in Lebanon exploded simultaneously on Tuesday, and hundreds of walkie-talkies used by Hezbollah exploded on Wednesday, with tensions in the Middle East still escalating.

The attacks resulted in several deaths and thousands of injuries.

Hezbollah, armed with a large arsenal of missiles, vowed to retaliate against Israel.

For this long-time market observer, it is somewhat surprising that the market has not paid more attention to this geopolitical issue nor reacted with a stronger risk-averse response.

Major external markets saw the U.S. dollar index rise after selling off and touching contract lows following the Fed's rate cut on Wednesday.

Crude oil prices on the New York Mercantile Exchange strengthened, trading at around $71.50 a barrel.

The benchmark 10-year U.S. Treasury yield is falling, currently at 3.694%.

U.S. economic data released on Thursday includes the weekly jobless claims report, the Philadelphia Federal Reserve Bank business survey, international transactions and the current account, existing home sales, and the index of leading economic indicators.

Technical analysis for gold and silver: Technically, December gold bulls have a strong overall technical advantage in the short term.

The next upside price objective for the bulls is to close above the solid resistance level of $2,750.00.

The next near-term downside price objective for the bears is to push futures prices below the solid technical support level of $2,500.00.

First resistance is at the record high of $2,627.20, then at $2,650.00.

First support is at $2,600.00, then at this week's low of $2,572.50.

Our market rating: 9.5.

December silver futures bulls have a solid overall technical advantage in the near term.

The next upside price objective for the silver bulls is to close above the solid technical resistance level of $32.46, the July high.

The next downside price objective for the bears is to close below the solid support level of $29.00.

First resistance is at $32.00, then at $32.46.

The next support is expected at $31.00, then at $30.50.