2025-08-29 Sing Pao's Column《真金白銀》(English translation) Safe-Haven Demand Surges as Gold Builds Support

Safe-Haven Demand Surges as Gold Builds Support

Heightened concerns over the Federal Reserve's independence, renewed trade tensions between the U.S. and major economies, rising fiscal tightening expectations in Europe, and persistent deficit worries have all fueled a sharp rise in market uncertainty. As a result, demand for safe-haven assets has surged, with gold prices climbing to a two-week high, briefly touching USD 3,398 before consolidating in the USD 3,380–3,394 range ahead of U.S. trading hours.

Looking ahead, the revised Q2 U.S. annualized GDP and July’s Core PCE inflation data will be key market catalysts. If GDP is revised downward and Core PCE shows further cooling, the market may increase bets on a rate cut later this year—supporting gold prices. Conversely, stronger-than-expected data could prompt a re-pricing of interest rate expectations and apply short-term pressure on gold.

Gold Technical Analysis

Technically, gold remains in an uptrend on the daily chart, trading above all major moving averages. The 20-day Simple Moving Average (SMA) around USD 3,350 serves as immediate support. Momentum indicators are turning bullish again, suggesting potential for gold to break above the key resistance zone at USD 3,400 and possibly target the next level at USD 3,440.

On the downside, sellers would need to drag prices below the convergence of the 20-day and 50-day SMAs near USD 3,350 to weaken the bullish outlook. A decisive break below the 100-day SMA at USD 3,318 would mark a more significant shift and open the door for further downside.

Silver Technical Outlook

Silver prices encountered resistance at the psychological USD 39.00 level, pulling back modestly after three consecutive days of gains. Despite this, the metal remains within a bullish channel on the daily chart. The 14-day Relative Strength Index (RSI) holds above 50, and prices are trading above the 9-day Exponential Moving Average (EMA), suggesting continued upward momentum in the short term.

A successful break above USD 39.00 would open the path toward the July 23 high of USD 39.53. Support lies at USD 38.25, followed by the 50-day EMA at USD 37.30. A drop below this support zone would weaken both short- and medium-term momentum.

Cryptocurrency Market

In the crypto space, Ethereum (ETH) has taken the spotlight, outperforming Bitcoin (BTC) in trading volume and reaching a new all-time high of USD 4,956. However, the broader market experienced a technical pullback, with BTC retreating to USD 110,000 and ETH sliding back to USD 4,600.

Analysts suggest that Ethereum-based financial asset firms may still be undervalued. Since June, digital asset companies have acquired 2.6% of the global circulating supply of ETH, while spot ETFs have accumulated another 2.3%—providing a fundamental basis for ETH’s breakout to record highs.

This Friday (August 29), a large batch of BTC and ETH options contracts—worth over USD 14.6 billion in notional value—are set to expire. The resulting volatility could present lucrative short-term trading opportunities. Disclaimer:

This column is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell financial products. Investing involves risk. Readers are advised to assess their personal financial situation carefully and consult independent professional advice before making any investment decisions.