Published: 30 December 2025,07:01
Daily Market Analysis New
Key Takeaways:
*Aggressive year-end profit-taking triggered a sharp pullback in gold and silver, with silver plunging over 7% after hitting record highs.
*Fed rate-cut expectations for 2026 remain a key medium-term support, as cooling inflation strengthens the case for a faster easing cycle.
Market Summary:
Gold and silver prices came under heavy pressure as year-end profit-taking accelerated, triggering a sharp pullback in safe-haven assets ahead of 2026. The selloff unfolded despite persistent geopolitical risks and expectations that U.S. interest-rate cuts will continue to underpin precious metals in the medium term. Silver led the decline, tumbling as much as 7.3% on the day after recently surging to a fresh record high, highlighting heightened volatility across the metals complex.
Gold also retreated as investors locked in gains following an exceptional rally this year. The metal has been one of the standout performers of 2025, rising more than 72%, supported by growing conviction that the Federal Reserve will ease monetary policy further next year. As inflation shows clearer signs of cooling, markets have increasingly priced in a faster pace of rate cuts in 2026 — a backdrop that typically benefits bullion by reducing the opportunity cost of holding non-yielding assets.
While short-term price action has turned volatile, longer-term fundamentals continue to offer support. Analysts point to sustained central-bank buying, robust inflows into gold-backed exchange-traded funds, and ongoing geopolitical uncertainty as key drivers underpinning demand. A softer U.S. dollar, weighed down by easing policy expectations, has also reinforced gold’s appeal as a hedge against currency volatility and broader macroeconomic risk, suggesting downside may remain limited once year-end positioning pressures fade.
Technical Analysis
Silver remains under pressure, extending its pullback and currently testing the key support level at 71.55. This zone is critical for near-term direction. A confirmed break below 71.55 would reinforce the prevailing bearish momentum and likely expose the next downside target at 64.55, marking a deeper corrective phase following the recent record-high rally.
Momentum indicators continue to tilt cautiously bearish. MACD shows increasing downside momentum, while RSI has retreated sharply from overbought territory and now sits near 52, suggesting room for further downside before conditions turn oversold. However, if sellers fail to secure a clean break below 71.55, a technical rebound cannot be ruled out. In that scenario, silver could retrace higher toward the 79.00 resistance level as short-term selling pressure eases.
Resistance Levels: 79.00, 83.60
Support Levels: 71.55, 64.55
Gold prices are trading lower after failing to sustain momentum near recent highs and are now testing the crucial 4440.00 support level. Price action around this zone will be pivotal in determining whether the current move develops into a deeper correction or stabilizes.
Momentum indicators point to continued downside risk. MACD shows strengthening bearish momentum, while RSI has dropped to 31, retreating sharply from overbought territory and approaching oversold conditions. A decisive break below 4440.00 would likely accelerate selling pressure, opening the path toward the next major support at 4265.00.
That said, if bearish momentum begins to fade and the support holds, gold may attempt a technical rebound. In such a scenario, prices could recover toward the 4430.00 — 4545.00 resistance zone, especially if profit-taking pressure eases or broader risk sentiment shifts.
Resistance Levels: 4430.00, 4545.00
Support Levels: 4340.00, 4215.00
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