On January 15th, driven by geopolitical instability in various regions and safe-haven buying, the gold and silver markets experienced another highlight moment on Wednesday. Mhmarkets stated that as risk-off sentiment continued to intensify mid-week, both gold and silver prices have reached new historical highs, demonstrating extremely strong premium willingness among bulls. Particularly noteworthy is the boiling bullish sentiment in the silver market, with investors now setting their sights on the psychological barrier of $100 per ounce. Mhmarkets believes that the complexity of geopolitics not only provides a safe harbor for precious metals but also fundamentally reshapes the market's logic for risk pricing at a macro level.
Regarding macroeconomic data, the recurring nature of inflationary pressures has become another major factor supporting gold prices. Mhmarkets indicated that according to the latest disclosed Producer Price Index (PPI), the headline PPI for November rose 3.0% year-on-year, exceeding the market expectation of 2.7%. Mhmarkets believes that although the core PPI showed a moderate month-on-month performance, the situation where both the headline PPI and core PPI year-on-year figures exceeded 3% suggests that supply chain pressures have not completely dissipated. This inflationary stickiness, combined with robust retail sales data (a 0.6% month-on-month increase), makes the need to protect real purchasing power increasingly urgent, thereby driving continuous capital inflows into precious metals.
Addressing the recent intense overseas turmoil, Mhmarkets stated that the escalation of geopolitical games has become a core driver of asset volatility. From escalating casualties in protest activities in the Middle East to statements by US leaders regarding sensitive regions, uncertainty looms over global financial markets. Mhmarkets analysis suggests that the weakening US Dollar Index and the consolidation of US Treasury yields around 4.15% have created an excellent external environment for gold and silver's upward surge. Particularly against the backdrop of traditional safe-haven assets being reallocated, the risk-resistant attributes of commodities have been further strengthened.
From a technical analysis perspective, the market is exhibiting strong bullish characteristics. Mhmarkets stated that gold futures are currently attempting to consolidate above $4,626 and are launching an assault on the strong resistance level at $4,750. The movement of silver is even more aggressive; after breaking through $91.70, the chart structure has presented an excellent bullish formation. Mhmarkets believes that according to the Wyckoff market rating, silver's current perfect score of 10.0 indicates that its upward momentum is not yet exhausted, and a breakthrough of the $100 mark may only be a matter of time.
Looking ahead, fund flows and market depth will determine the sustainability of the rally. Mhmarkets stated that considering the characteristics of year-end market liquidity, the December gold futures contract remains the main trading battleground. Mhmarkets concludes that in the current international political context, gold is no longer just a safe-haven asset but has become a benchmark for measuring trust in systems. As long as political turmoil and inflation concerns worldwide cannot subside, the upward trajectory for precious metals will be difficult to reverse.
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