2025-02-07 Sing Pao's Column (w/English translation)《真金白銀》

On Wednesday, February 5, gold continued to set new all-time highs, reaching $2,882 per ounce as investors sought safe-haven assets amid escalating concerns over tariffs and their potential impact on economic growth. The strong upward momentum in the gold market reflects heightened uncertainty in the global economic and financial landscape. Given the current global economic backdrop, investors are increasingly allocating funds into gold as a hedge against potential economic fluctuations and inflation. Particularly in light of tariff volatility and rising trade uncertainties, gold’s role as a store of value is becoming even more pronounced. As a result, the market is expected to see further capital inflows, which could drive gold prices even higher in the near future.

During the Asian trading session on Thursday, February 6, spot gold was trading around $2,870, maintaining its strong upward trend with no clear signs of reversal. The immediate support zone for gold is currently between $2,856 and $2,845, which is expected to provide solid market support. Should gold prices fall below $2,840, the next significant support level will be at $2,818, aligning closely with the 50-day moving average. The 50-day moving average is widely regarded as a crucial technical support level, and if gold prices decline towards $2,815, it may attract renewed buying interest. The final line of defense for the current uptrend stands at $2,780—only a sustained daily close below this level would indicate a potential shift in the overall bullish outlook.

Silver Market Outlook

Silver prices have also continued their ascent, reaching a three-month high of $32.30 per ounce. As trade relations grow increasingly complex and the U.S. dollar experiences a technical pullback, some capital has flowed into silver as an alternative safe-haven asset. From a technical perspective, if silver remains above the $32 level, further upward momentum could push prices toward higher resistance levels. However, if silver retraces below $32, its first major support level is expected to form around $30 per ounce. Despite this potential correction, given the prevailing market risk appetite, silver still demonstrates strong upward momentum, with the next key psychological resistance set at $33 per ounce.

Cryptocurrency Market Update

In the cryptocurrency sector, Bitcoin (BTC) continues to consolidate between $90,000 and $100,000, maintaining its record highs. However, the Relative Strength Index (RSI) has not mirrored the price increase, signaling a potential decline in buying momentum. This divergence suggests that BTC may be vulnerable to a market correction in the near term.

Adding to the uncertainty, the Trump administration has been rapidly implementing key campaign promises, including trade tariffs and stricter immigration policies. However, a previously anticipated Bitcoin Strategic Reserve Plan—which was expected to serve as a major catalyst for BTC’s price surge—has now stalled. Reports indicate that the policy is under further feasibility review, raising concerns among investors. Following this news, BTC quickly dropped to $90,000, reflecting market anxiety over the uncertain regulatory environment and the lack of immediate institutional support.