On December 19, during the Asian trading session, gold prices hovered around $4,340. The precious metals market saw broad gains on Wednesday, with gold surging nearly 1% intraday, while silver jumped close to 4%, breaching the $66 mark for the first time and hitting a record high of $66.89. Analysts attribute the rally to weak U.S. employment data, fueling expectations of another Federal Reserve rate cut in 2026. Additionally, geopolitical tensions escalated due to U.S. sanctions on Venezuelan oil tankers, further boosting safe-haven demand. Market participants are now eyeing upcoming U.S. CPI and PCE inflation data for clues on the Fed's policy trajectory.
From a technical perspective, gold remains firmly above the 200-period Exponential Moving Average (EMA) at $4,258 on both daily and hourly charts, with the upward-sloping EMA indicating sustained bullish momentum. The MACD indicator remains above the signal line in positive territory, and the histogram shows no signs of contraction, suggesting continued upward momentum. The Relative Strength Index (RSI) hovers near 60, still below overbought levels, supporting bullish sentiment. Analysts suggest that if gold holds above $4,300, further gains are likely; a drop below this level could signal consolidation before another potential rally next year.
Silver continues to trade near record highs after its recent breakout, with the MACD turning positive, indicating strengthening upward pressure. The RSI at 69.62 approaches overbought territory, hinting at a possible slowdown in momentum. Resistance is seen at the channel top of $66.89, which may challenge further buying. Upside targets include the 261.8% Fibonacci extension level at $68.30 and the psychological $70.00 mark. On the downside, immediate support lies at the previous high of $64.72, followed by trendline support around $63.35 and the December 12 low of $60.87. While short-term correction risks exist, silver's long-term potential remains intact.
In cryptocurrencies, Bitcoin and Ethereum remain weak, with failed rebound attempts forming a "lower highs" pattern. Post the "1011" crash, futures leverage has been largely unwound, with speculative leverage hitting historic lows—a positive sign for market health but potentially delaying fresh institutional inflows. Analysts note that despite high volatility, the crypto market retains long-term potential, especially with anticipated U.S. tax cuts, rate reductions, and relaxed regulations in 2026. The integration of crypto assets with traditional finance continues, building resilience during downturns and laying groundwork for future growth.
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