2025-10-10 Sing Pao's Column《真金白銀》(English translation) Gold Breaks Records, Silver Tests Limits

Gold Breaks Records, Silver Tests Limits

Gold surged to a historic high this week, breaking above the psychological $4,000 level for the first time and reaching a peak of $4,059 per ounce. This rally was driven by a combination of factors: growing expectations for U.S. interest rate cuts, a weakening U.S. dollar, escalating geopolitical tensions, and consistent central bank gold purchases. However, market sentiment reversed sharply on Thursday following reports of a ceasefire agreement between Hamas and Israel, marking a potential turning point in the Middle East conflict. This sudden de-escalation caused safe-haven demand to drop and triggered a sharp pullback in gold prices.

This bout of volatility highlights how geopolitical developments have become key short-term drivers of gold. If the ceasefire holds and tensions continue to ease, further profit-taking from long positions could deepen the correction. Still, investors should closely watch for signs of buying support during the pullback to assess whether the broader uptrend remains intact.

Gold Technical Outlook: Key Moving Averages in Focus

Technically, the 5-day moving average around $4,020 serves as the immediate support level. A break below this could intensify downward pressure. More crucial are the 10-day ($3,950) and 20-day ($3,880) moving averages, which represent the structural backbone of the current rally. As long as gold remains above these lines, the uptrend is considered healthy.

On the upside, the recent peak at $4,060 now acts as a key resistance level. A decisive breakout above this mark would open the door to fresh highs. Conversely, failure to hold the short-term averages may indicate a deeper correction ahead.

Silver Market: Gearing Up for the $50 Mark

Silver has remained resilient, trading steadily near $48.75 per ounce, close to multi-year highs. The Relative Strength Index (RSI) remains above 70, suggesting the market is still in overbought territory. The rally appears largely technical in nature, with momentum buyers in control.

If prices hold above $48.15, the market may attempt to break through the $50 psychological barrier. However, a drop below $47.75 could trigger a corrective pullback, cooling off the current bullish momentum. Investors are closely watching these levels to determine silver’s next move.

Crypto Outlook: Consolidation Amid Regulatory Clarity

In the crypto market, Bitcoin (BTC) hit a weekly high of $126,000 before retreating to around $122,000, in line with a broader equity market correction. Analysts view this pullback as a healthy consolidation, with $120,000 emerging as a key short-term support level.

On the regulatory front, the EU’s Markets in Crypto-Assets (MiCA) framework has officially taken effect, introducing a unified operational and compliance standard for all 27 member states. This landmark legislation aims to enhance investor protection and market integrity and is expected to drive further industry consolidation. Despite near-term volatility, institutional demand and growing regulatory clarity continue to support a broadly optimistic outlook.

Disclaimer (English)

This column is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any financial product. Investing involves risk. Readers should assess their personal circumstances carefully and seek independent professional advice before making investment decisions.