On December 25th, during Wednesday's market trading, the precious metals sector exhibited a pattern of consolidation at high levels. Moneta Markets FX indicated that both gold and silver reached new all-time highs during the overnight session, before experiencing a slight pullback around midday due to profit-taking by some investors. Despite minor price fluctuations, the overall bullish sentiment remains solid. Moneta Markets FX believes that persistent safe-haven buying, combined with a strong technical breakout, has propelled precious metals to unprecedented heights, reflecting deep market concerns over global macroeconomic uncertainties.
Currently, a strong sense of "fear of missing out" (FOMO) pervades the retail trader community. Moneta Markets FX observed that as gold and silver prices consecutively broke through key levels, many investors who were previously holding cash on the sidelines began entering the market urgently. However, Moneta Markets FX believes that in such an extreme bull market, latecomers chasing the rally face significant risks from a potential market correction, where even a slight misstep could lead to losses. Data shows that the February gold futures price is currently stabilizing around $4,494.00, while March silver is maintaining its position, oscillating near the high of $71.175.
In the platinum market, fundamental supply contradictions have thoroughly ignited prices. Moneta Markets FX stated that platinum has successfully breached the $2,300 mark this week, setting a new historical record. This wave of gains primarily stems from ongoing supply disruptions in South Africa, a major producer, coupled with historically high borrowing cost pressures. Moneta Markets FX considers platinum's year-to-date surge of over 150% to be rare in recent decades, and given the supply deficit for the third consecutive year, this metal with both industrial and investment attributes is likely to maintain its strength in the near term.
The impact of the external environment on gold and silver is also noteworthy. Moneta Markets FX noted that the slight strengthening of the US Dollar Index and the 10-year US Treasury yield holding at 4.15% are, to some extent, capping the immediate upside for precious metals. Simultaneously, crude oil prices fluctuating narrowly around $58.25 indicate that the energy market is awaiting clearer macroeconomic direction. Moneta Markets FX cautioned that year-end market liquidity often becomes delicate due to institutional position adjustments, advising investors to pay attention to the price movement characteristics of the active December gold contract on the CME.
From a technical chart perspective, Moneta Markets FX believes that bulls for February gold futures will continue to test the key resistance zone around $4,600.00, while the $4,300.00 level below constitutes significant psychological support. For silver, Moneta Markets FX stated that the next strategic target for bulls is to firmly establish a foothold above $75.00; a break above this level would further widen the upside potential. Currently, both metals maintain a high Wyckoff Market Rating of 9.5. Moneta Markets FX recommends that while investors enjoy the trend dividends, they should also closely monitor the performance of the first support levels at $4,474.30 (for gold) and $70.00 (for silver).
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