Gold and silver prices are hovering near record highs, buoyed by expectations of further interest rate cuts in the future, as US inflation growth was lower than expected. Platinum prices are also approaching their highest point in 17 years.
Spot gold prices are approaching $4,330 per ounce and are on track for a second consecutive week of gains. Data released on Thursday showed that the core consumer price index in the United States rose at its lowest rate since early 2021, further confirming expectations of lower borrowing costs – a positive factor for the price of non-yielding precious metals.
However, the latest inflation report was affected by the record-breaking six-week government shutdown, which ended last month. Since cutting interest rates for the third consecutive time last week, the Federal Reserve has been ambiguous about the pace of future monetary easing. Traders see a roughly 25% chance of a rate cut in January, while US President Donald Trump has called for a significant rate cut next year.
Geopolitical tensions have also enhanced the safe-haven appeal of gold. This week, the escalation of the situation in Venezuela has supported the gold price. As the US military presence in the region continues to grow, Trump ordered the blockade of all sanctioned oil tankers, increasing pressure on Caracas.
This year, the prices of precious metals have soared. Both gold and silver are on track to achieve their best annual performance since 1979. The price of silver has more than doubled, and that of gold has risen by about two-thirds, mainly due to increased purchases by central banks and inflows into precious metals exchange-traded funds.
Goldman Sachs analyst Daan Struyven noted in a report that the decline in US interest rates has led ETF investors to “start competing with central banks for limited gold reserves.” They expect that the two major factors driving gold prices higher – the structural high demand from central banks and the cyclical support from the Fed’s rate cuts – will continue to push up gold prices.
At the same time, the price of platinum has risen for the seventh consecutive trading day, with an increase of more than 100% so far this year. The price of platinum has soared above $1,980 per ounce, reaching its highest level since 2008. Meanwhile, signs of tightness have emerged in the London market, with banks moving precious metals to the United States to avoid tariff risks. In addition, exports of platinum to China have been strong this year, and the launch of trading on the Guangzhou Futures Market has further boosted demand.
Technical analysis:
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Gold: Yesterday, our plugin gave a reminder of the yellow liquidity sweep around 4314, which was perfect. After the low sweep, the price directly touched above 4370. Currently, the price has dropped back to around 4310. Due to the Friday factor and the upcoming Christmas next week, the bulls may temporarily be unable to effectively hold above 4350. For today, continue to capture the small rebound waves after the low liquidity sweep. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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The Nasdaq Composite Index: The overnight price fluctuated and rebounded to above 25,100, but then began to consolidate and fluctuate. If it breaks upward today, it is recommended to wait and see; if it breaks downward, it may sweep through the liquidity around 24,700/24,800 before initiating a small rebound. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: The yellow zone liquidity alert issued by the plugin yesterday was not swept. For today, we suggest waiting for the liquidity to be swept before considering new rebound signals. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
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Today’s key financial data and events to focus on:
15:00 German Producer Price Index for November
15:00 UK November seasonally adjusted retail sales
23:00 U.S. Personal Consumption Expenditures Price Index for October
