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Gold and silver rebounded from recent lows, but Bloomberg Intelligence strategist Mike McGlone warns that last week’s record highs may mark a market peak. While a surge toward $6,000 an ounce for gold is possible if momentum persists, he sees a more likely scenario where prices revert toward $4,000, with silver potentially falling back to around $50. He argues that the sharp, parabolic rise early in the year points to a broader peaking process, with gold now deeply overbought and significantly outperforming the broader commodity complex, suggesting an unfavourable risk and reward balance.
McGlone also notes that gold appears stretched relative to inflation, reaching valuation extremes not seen since the early 1970s, and he expects deflationary pressures to follow rather than inflation rising to justify current prices. Despite this, gold may still retain value as a portfolio diversifier, as its ratio against the S&P 500 remains well below past peaks, offering some relative support if equities weaken. He adds that renewed strength in equity markets could pressure gold further, while a downturn could allow gold to outperform on a relative basis, and he sees silver’s volatility as consistent with a return toward historical norms. Source
Central banks added 19 tonnes of gold in December, bringing total reported net purchases for 2025 to 328 tonnes, slightly below the 345 tonnes recorded the previous year. Buying slowed toward the end of the year as prices remained elevated, but overall demand stayed robust, averaging 27 tonnes per month. December activity included 30 tonnes of gross purchases offset by 11 tonnes of sales, indicating continued interest in gold as a reserve asset despite some moderation in pace.
Uzbekistan led December purchases with 10 tonnes, followed by Kazakhstan with 8 tonnes and Poland with 7 tonnes, while several other countries made smaller additions and Singapore stood out as the sole significant seller with 11 tonnes sold. Over the full year, Poland emerged as the largest net buyer, adding 102 tonnes, with Kazakhstan, Azerbaijan’s state oil fund, Brazil, China, and Turkey also making substantial additions. On the selling side, Singapore was the largest net seller in 2025, alongside Ghana and Russia, reflecting divergent reserve management strategies among central banks. Source
Gold and silver rebounded sharply after heavy selling, posting some of their largest one-day gains on record, but prices are struggling to regain key psychological levels. Gold remains unable to sustain moves above $5,000 an ounce, trading near $4,922 after giving back part of its rebound, while still sitting well above recent lows but notably below last week’s peak. Silver is showing a similar pattern, holding near $85 an ounce after failing to maintain strength above $90, underscoring continued volatility and uncertainty across the precious metals complex.
Analysts caution that the recent bounce likely represents a counter-trend move rather than the start of a renewed rally. Technical resistance around $5,000 and $5,100 is seen as a potential selling zone, while downside risks remain toward $4,800 or even $4,500 if support fails. A stabilizing U.S. dollar and reduced expectations for aggressive interest rate cuts are also seen as near-term headwinds for gold. While long-term fundamentals such as safe-haven demand remain intact, the current environment suggests a period of consolidation or further correction, with risk management taking priority over chasing upside. Source
Gold and silver pared back most of their overnight gains by midday Wednesday as profit taking emerged among short-term futures traders and the U.S. dollar rebounded. Gold was modestly higher near $4,947, while silver held firmer near $86.6, but both were well below earlier highs. Market sentiment was further shaken by heavy outflows from major Chinese gold-backed exchange-traded funds, which saw nearly $1 billion exit in a single day following gold’s sharp pullback from record levels, marking a rapid reversal after strong inflows just days earlier.
Broader market conditions added pressure, with a stronger dollar, softer crude oil prices near $63 a barrel, and 10-year U.S. Treasury yields around 4.28%. From a technical perspective, gold futures have posted a bearish key reversal pattern, suggesting a potential market top, with resistance clustered around $5,000 to $5,250 and downside risks toward the mid-$4,400s if support fails. Silver is also showing a cautious technical setup, with prices struggling below resistance near $90 and vulnerability toward lower support zones, reinforcing the view that recent strength may be corrective rather than the start of a renewed rally. Source
Gold and silver have rebounded from one of their sharpest corrections in more than a decade, which ING views as a positioning-driven reset rather than a fundamental reversal. After an extraordinary three-month surge fuelled largely by speculative inflows, particularly from China, both metals suffered historic one-day declines as crowded positions were unwound. The selloff was accelerated by a stronger U.S. dollar following the announcement that Kevin Warsh could be nominated as the next Federal Reserve chair, alongside rising margin requirements that forced liquidation. Prices rebounded strongly once stress eased, suggesting the decline overshot amid leverage and momentum-driven trading rather than reflecting a deterioration in underlying fundamentals.
ING expects volatility to remain elevated but sees medium-term support intact for both metals. Gold continues to benefit from safe-haven demand, supportive real-rate dynamics, and sustained central bank accumulation, which has been a stabilizing force since 2022 despite some moderation in buying volumes. Silver remains more volatile due to its smaller market size and exposure to both industrial and investment demand, with electrification trends and tight physical balances underpinning its outlook, though ETF outflows remain a near-term risk. Overall, ING anticipates that gold and silver will recover at a steadier, more measured pace, with near-term price action driven mainly by movements in the U.S. dollar, interest rate expectations, and broader risk sentiment rather than another rapid, speculative surge. Source
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Gold and silver saw sharp volatility during Wednesday’s session after an early rebound from last week’s selloff. Gold futures briefly reclaimed the key $5,000 per ounce level, rising about 3% to around $5,070 before reversing, while silver surged more aggressively, climbing 8–10% and momentarily breaking above $90 per ounce. The early strength reflected strong technical buying, but the momentum faded as fresh macroeconomic signals altered market sentiment.
The turning point came after the release of weaker-than-expected U.S. private-sector employment data, which pointed to slowing hiring amid softer economic growth and high borrowing costs. The data pushed both metals lower, with gold slipping back below $5,000 and silver failing to hold above $90, though both still closed the day with modest gains. Attention has now shifted to overnight trading in Asia and Europe, as price action during these sessions is expected to determine whether gold and silver can stabilize above these psychologically important levels or face renewed consolidation or downside pressure. Source
U.S. service-sector activity remained steady in January, with the ISM Services PMI holding at 53.8, slightly above expectations and marking the 19th consecutive month of expansion. All four major subindexes stayed in growth territory, signalling continued momentum across the sector, while the index’s position well above 50 pointed to ongoing economic expansion. However, price pressures showed signs of intensifying, with the Prices Index edging higher and remaining above its 12-month average, adding complexity to the broader inflation outlook.
Gold prices traded choppily following the data release, having earlier reached a session high above $5,090 per ounce before settling near the middle of the daily range. Spot gold last traded around $4,985 per ounce, posting a modest gain on the day. ISM commentary highlighted improving employment conditions and rising business activity, but also flagged growing uncertainty linked to tariffs, fuel prices, and geopolitical tensions, suggesting that while economic expansion continues, cost pressures and supply dynamics warrant close monitoring. Source
Gold prices moved back above $5,000 an ounce as weaker U.S. labor market data reinforced expectations of slowing economic momentum. ADP reported that just 22,000 jobs were added last month, well below forecasts and following downward revisions to December’s figures, highlighting a clear deceleration in private-sector hiring. Job growth in 2025 has fallen sharply compared with last year, although overall wage growth has remained relatively stable, signalling softer demand for labor without a sudden collapse in income growth.
The gold market showed limited immediate reaction to the data but remained firmly supported, with spot prices trading around $5,045 an ounce, up roughly 2% on the day. With no official government employment report due to a temporary shutdown, the ADP figures stand as the sole labor market signal this week, reinforcing the view that employment conditions are cooling. Economists see this trend as supportive of potential interest rate cuts later in the year, particularly as wage inflation shows early signs of easing for both job stayers and job switchers. Source
Investor demand for gold remains strong beyond short-term price swings, with growing interest in digital and tokenized forms of ownership. Tokenized gold, which brings physical bullion onto blockchain networks, has expanded rapidly over the past year and is now estimated at roughly $4–5 billion in value. While still small compared with the global gold market, it is among the fastest-growing gold investment segments, benefiting from broader momentum in real-world asset tokenization and improved regulatory clarity that is encouraging institutional participation.
MKS PAMP is positioning itself to capture this growth through the relaunch of its DGLD gold token, aiming to compete with established gold-backed digital products by expanding supply, liquidity, and institutional use. Tokenized gold offers features not available through traditional vehicles, including round-the-clock trading, near-instant settlement, deep fractional ownership, and programmability for use as collateral or within financial applications. Trust, custody, and transparency remain central considerations, but as banks and financial institutions deepen their involvement in digital assets, tokenization is increasingly seen as an extension of gold’s longstanding role rather than a replacement for physical ownership or exchange-traded products. Source
Rising gold and silver prices alongside a weaker dollar have revived debate about the greenback’s long-term role, but signs point to gradual erosion rather than imminent collapse. While the dollar no longer reacts as strongly during market stress and confidence has slowly faded, it remains deeply embedded in global trade and finance. Most international transactions still rely on the dollar, and despite efforts by some countries to bypass it, the currency continues to dominate foreign exchange trading and global reserves, reinforcing its central position in the financial system.
Challenges to the dollar are building, particularly from mounting U.S. deficits and rising debt levels that could pressure investor confidence and increase the risk premium on government bonds. China’s ambitions to elevate the yuan face structural limits due to capital controls and restricted convertibility, making a near-term shift unlikely. In the meantime, a weakening dollar environment can support equities, which are often viewed as protection against currency debasement, helping explain strong stock market performance and potentially encouraging new public listings as companies look to capitalize on favorable conditions. Source
Frank Giustra described last week’s sharp decline in gold and silver as a deliberate liquidity event rather than a standard market correction, emphasizing that the 50-year dominance of paper gold pricing is coming to an end. He noted that the parabolic rise in gold toward $5,000 an ounce made a correction inevitable and highlighted the growing influence of physical demand in Asia, which he believes is diminishing the efficacy of paper markets and ETFs. Giustra strongly advised investors to hold physical gold, arguing that paper gold cannot be relied upon in times of crisis, and criticized Bitcoin as an overleveraged asset heading for collapse.
Giustra also framed the White House’s launch of Project Vault as evidence that globalization is ending and a new era of state capitalism is emerging, with the U.S. racing to secure critical mineral supply chains in response to China’s long-standing dominance. He warned that the U.S. fiscal trajectory, with mounting deficits and rising debt, is unsustainable and will inevitably lead to currency debasement and a global monetary reset. Highlighting opacity in U.S. gold reserves, he contrasted this with China’s accumulating holdings to support a sanctions-free trade channel, reinforcing his view that a profound shift in the global financial order is underway, with precious metals and copper positioned as key hedges. Source
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Gold and silver have rebounded sharply following their recent historic sell-off, posting some of their largest one-day gains on record. Spot gold rose above $4,900 an ounce, climbing more than 5%, while silver surged over 11% to nearly $88 an ounce. Analysts attribute the recovery to the unwinding of short-term speculative positions rather than any fundamental shift, suggesting that the metals’ underlying investment case remains intact. Deutsche Bank and other institutions continue to maintain bullish outlooks, pointing to sustained demand from China and ongoing global economic and geopolitical uncertainties as key support for gold.
Despite the strong rebound, market volatility remains elevated, and analysts caution that gold is exhibiting unusual behavior, at times acting like a high-risk or meme-like asset rather than a traditional safe haven. Leveraged speculative activity has amplified price swings, affecting diversified portfolios and creating heightened risk for investors. Still, the broader drivers supporting precious metals—including fragile confidence in major currencies, rising debt burdens, and geopolitical tensions—remain firmly in place, leaving many experts optimistic that the worst of the correction may be behind the market. Source
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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