Gold and silver prices soared to record highs, with escalating geopolitical tensions and a weakening US dollar fueling the historic rally in precious metals. Platinum prices also hit new highs.
Spot gold prices rose by as much as 1.2%, touching a high above $4,530 per ounce. The tensions in Venezuela, including the US seizure of oil tankers and increased pressure on the government of Nicolás Maduro, have enhanced the safe-haven appeal of gold. In Africa, according to a message posted by US President Donald Trump on social media, the US has launched a “powerful and lethal strike” against a terrorist organization in Nigeria.
The spot price of silver rose for the fifth consecutive trading day, with the increase reaching as high as 4.6% at one point, breaking through the $75 per ounce mark for the first time. The recent rise in silver prices is mainly attributed to speculative capital inflows and the persistent supply imbalance in major trading centers following the historic short squeeze in October.
Trump’s radical moves to reshape global trade and his threats to the independence of the Federal Reserve both fueled the stock market rally earlier this year. The so-called “currency devaluation trade” also supported investor demand as concerns over ballooning debt burdens led investors to sell off sovereign bonds and their issuing currencies.
The resilience of gold is reflected in its rapid rebound after falling from its previous high of $4,381 in October, when the rally was considered overheated. Heavy buying of ETFs has been the main driver of the recent rise in gold prices, with the holdings of the SPDR Gold Trust, the largest precious metals ETF under State Street, increasing by more than one-fifth this year.
The rally in silver has been even more astonishing than that in gold. Since the market tightening last October, the London silver vaults have attracted a large inflow of funds, but most of the global physical silver remains stuck in New York as traders await the results of the US Department of Commerce’s investigation into whether imports of key minerals pose a national security risk. The outcome of this investigation could pave the way for tariffs or other trade restrictions on silver.
Technical analysis:
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Gold: Previously, our plugin highlighted the yellow area indicating a rebound after low sweep liquidity, and the price movement was almost identical. Additionally, the purchase made after breaking through 4518 is currently in profit. If opening new positions today, it is recommended to go long after a pullback following a break. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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The Nasdaq index: The price has further risen above 25,600, but there may still be short-term fluctuations. Coupled with weakened trading during the holiday, we will continue to maintain liquidity sweeps around 25,500 before considering capturing long signals. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: Trading was light during the holiday period, and the market remained calm. Wait for a breakthrough signal within the day before considering taking action. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
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