Metals Market Update: December 29, 2025
The precious metals complex traded flat on Friday, with gold and silver prices holding steady amidst a backdrop of muted market activity.
| Metal | Price (USD) | Change | % Change | Day High | Day Low |
|---|---|---|---|---|---|
| Gold (XAU) | 4526.60 | 0.00 | 0.00% | 4571.87 | 4481.33 |
| Silver (XAG) | 581.91 | 0.00 | 0.00% | 587.73 | 576.09 |
Gold Technical Analysis
Gold prices have oscillated between $4550 and $4600 over the past week, indicating a narrow trading range. The Relative Strength Index (RSI) reading of 50 suggests that gold is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) indicator has also reached equilibrium, with no clear indication of a trend reversal.
However, macro factors suggest that gold may be due for an upward correction. With inflation expectations still elevated and interest rates at historically low levels, investors are likely to maintain their allocation to safe-haven assets like gold. Furthermore, the recent decline in Treasury yields has reduced the attractiveness of yield-sensitive assets, which could lead to a rotation into precious metals.
Macro Analysis
The recent drop in Treasury yields has been attributed to a combination of factors, including declining inflation expectations and softer than expected economic data. This trend is likely to continue as central banks maintain their accommodative monetary policies. Meanwhile, the ongoing trade tensions between the US and China remain a significant driver of market volatility, with gold and silver often serving as a hedge against global uncertainty.
Silver Technical Analysis
Silver prices have traded in tandem with gold, with both metals exhibiting similar trading ranges. However, silver's volatility has been slightly higher than gold's over the past week, indicating potential for an upside breakout. The RSI reading of 55 suggests that silver is moderately oversold and due for a bounce.
Macro Analysis
Silver's relationship with gold remains strong, as it tends to follow the yellow metal's price movements. However, silver's lower cost base and industrial demand make it more sensitive to changes in economic growth expectations. As such, investors may be cautious about increasing their allocation to silver unless there are clear signs of an economic rebound.
Trading Bias
Gold: Hold
With gold prices stuck within a narrow trading range, the most conservative approach is to maintain a holding position and wait for a clear breakout above or below the current level. The macro factors supporting gold's price are still intact, but technical indicators suggest that a correction may be due soon.
Silver: Buy
Given silver's moderately oversold condition and potential for an upside breakout, investors may consider initiating a long position with a modest target of $600.
Key Support and Resistance Levels
Gold:
- Key support level: $4481.33
- Key resistance level: $4571.87
Silver:
- Key support level: $576.09
- Key resistance level: $587.73
Actionable Insights and Risk Management Reminders
Investors should maintain a cautious approach to precious metals trading, as market volatility remains elevated. A combination of macro factors and technical indicators suggests that gold may be due for an upward correction, while silver's moderately oversold condition makes it a potential buy candidate. However, a clear breakout above or below the current price levels is necessary before making any significant investment decisions.
Investors should also remain vigilant about changes in market sentiment and adjust their positions accordingly. A risk management strategy that includes regular portfolio rebalancing and position sizing adjustments can help mitigate losses and maximize gains in this volatile market environment.
By Malik Abualzait
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