Market sentiment for precious metals is running high. Last week, spot gold in London fluctuated higher, breaking through $4500 per ounce during the session and posting a weekly gain of 4.41%. Last Friday marked the first trading day after the overseas Christmas holiday, with gold, silver, copper, and platinum all reaching new highs. Spot gold rose more than 1%, spot silver surged 10% to stand above $79, spot platinum climbed 8%, and COMEX copper futures advanced 5.01%. With short-term market sentiment overheated and the potential for substantive progress in the Russia-Ukraine situation, a cautiously optimistic stance towards gold is advised.
Recent economic data reveals a resilient U.S. economy, yet the labor market shows signs of instability. Specifically, U.S. real GDP for the third quarter grew significantly by 4.3%, the fastest pace in two years, driven by robust household consumption. The labor market showed no significant pressure, as initial jobless claims for the week of December 20 fell to 214,000, compared to expectations and a prior reading of 224,000. If the Federal Reserve maintains an accommodative stance while inflation expectations unexpectedly rise, or if it turns hawkish again, adverse impacts on the economy and financial markets could follow, leaving policy in a dilemma. Either scenario could generate potential bullish effects for gold. Coupled with the current volatility in geopolitics, gold remains a crucial asset allocation option. Last week, gold prices climbed again to set a new all-time high, opening up further upward space for 2026.
Prepared by: Li Qi Practicing Qualification: F3046227 Trading Advisory Qualification: Z0016145 Disclaimer: The information in this report is sourced from publicly available materials. Our company makes no guarantees regarding the accuracy, reliability, or completeness of this information, nor does it warrant that the information and recommendations contained herein will not change. We have strived for objectivity and fairness in the report's content. However, the views, conclusions, and suggestions are for reference only and do not constitute recommendations for any specific products, businesses, or operational basis for related instruments. Any investment decisions made by investors based on this information are at their own risk; neither the company nor the author bears responsibility.
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Editor: Zhu Henan
