Yesterday, the precious metals market surged strongly to new highs, and the overall precious metals sector entered an acceleration mode. Tonight, there is a key focus to watch: the release of the US December CPI data.

To understand what the Federal Reserve will do next, one cannot ignore the two main factors: employment and inflation, and this data happens to be the most direct window to verify these two indicators. Therefore, almost all traders who rely on data are waiting for it.

Interestingly, big funds are never panicked when the data is released. They usually start positioning a few days in advance. The seemingly random fluctuations in the market are actually their "votes." The market reaction when the non-farm payroll data was released last week proved this—those who knew the direction early were already waiting there.

Advice for short-term trading: Be sure to reduce positions in key support and resistance levels in a timely manner. Volatility will definitely intensify before the data is released—that's a rule. Instead of stubbornly holding on, it’s better to keep some positions to buy low and sell high, participating in the trend while avoiding getting caught in a trap.