2025-12-26 Sing Pao's Column《真金白銀》(English translation) Gold and Silver Surge to Record Highs Amid Geopolitical Tensions

Gold and Silver Surge to Record Highs Amid Geopolitical Tensions

Gold and silver prices skyrocketed to fresh all-time highs, with gold climbing to nearly $4,490/oz and silver reaching $69.70/oz during Asian trading hours on December 23. Silver has now gained over 135% year-to-date. This powerful rally is being driven by two major factors.

First, safe-haven demand surged after U.S. President Donald Trump announced a full blockade on all sanctioned oil tankers entering or exiting Venezuela, heightening geopolitical tensions and pushing investors toward safer assets. Second, speculation is mounting that Trump may nominate a new Federal Reserve Chair early next year. Market expectations are that the successor would lean more dovish, favoring rate cuts—this, along with a weakening U.S. dollar, further boosted precious metals.

Technical analysis shows that gold remains overbought but is showing no signs of weakness yet. As long as prices stay above the rising average line (currently around $4,384), the short-term bullish bias remains intact. On the 4-hour chart, the 20-period simple moving average (SMA) is well above both the 100 and 200 SMAs, all trending upward, suggesting continued upward momentum. The Relative Strength Index (RSI) stands at 76, indicating a possible short-term consolidation or correction, but buying support is expected on dips.

Silver also maintained its strong uptrend, soaring to a new high of $69.70/oz. Over the past two weeks, silver has repeatedly rebounded from the 100-hour SMA. The breakout above the key $66.40–66.50 resistance zone last week triggered a wave of buying. Technical indicators remain strong, with the RSI above 70 and MACD staying in positive territory at 0.19, suggesting building momentum. A pullback toward $65.57 may find dynamic support, while $64.77 marks a key line between bullish and bearish territory on the daily chart.

In the cryptocurrency sector, 2025 was filled with volatility and unexpected turns. Despite a newly elected U.S. president who claimed to support crypto and AI, the crypto market failed to deliver the bull run many hoped for. Regulatory clarity, ETF approvals, institutional interest, and blockchain adoption all made headlines, yet traditional equities vastly outperformed crypto throughout the year. That said, this does not signal a retreat for crypto. As liquidity gradually returns in 2026, the emergence of a single solid real-world use case may ignite the next bullish wave.

Disclaimer: This column is for informational purposes only and does not constitute investment advice or an offer to buy or sell any financial products. Investing involves risk. Readers should carefully assess their personal situation before making any investment decision and seek independent professional advice.