Gold and silver have both entered strong momentum phases, supported by falling real yields, softer inflation prints and a market increasingly confident that policy easing will begin sooner rather than later. The recent price action reflects a shift from defensive accumulation toward a broader risk-seeking bid for hard assets.
Gold outlook
Gold’s breakout from its consolidation band indicates that buyers are absorbing supply effectively. The next test is the region near 4,300, where profit-taking could occur, yet the underlying drivers remain favourable.
• The market is pricing in earlier and steeper rate cuts.
• Treasury yields have softened, easing the opportunity cost of holding bullion.
• Physical demand from Asia is firm, and central bank buying remains consistent.
Given these factors, a retest of recent highs in December is plausible, although volatility could increase if economic data surprises on the upside.
Silver’s new record
Silver tends to lag gold during the early stages of a precious-metals rally but outperforms once momentum becomes broader. Its break to new highs signals:
• A shift toward industrial-linked metals, suggesting investors expect stronger activity in 2025.
• Confirmation that speculative flows are returning after October’s short-squeeze dynamics.
• A healthier breadth in the metals complex rather than a narrow gold-only move.
While silver’s surge does not guarantee immediate follow-through, it reflects improving sentiment toward cyclical growth and risk assets.
Overall signal
The combination of gold’s breakout and silver’s new record suggests that the metals market is pricing in a friendlier macro backdrop driven by easing policy and stabilising growth expectations. December highs are possible, although short-term pullbacks should not be surprising given how rapidly both assets have risen.
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