Core Viewpoint - The precious metals and stock markets experienced a significant pullback, with major U.S. stock indices closing lower on December 29, 2025, marking the last trading week of the year [1]. Group 1: Market Performance - The three major U.S. stock indices all closed down, with the S&P 500 index falling by 0.35%, the Nasdaq down by 0.5%, and the Dow Jones down by 0.51% [1]. - Precious metals, particularly silver, saw a sharp decline, with spot silver dropping over 9%, marking its largest single-day drop since September 2020 [3]. - Spot gold fell more than 4%, the largest single-day drop since October 21, and COMEX gold futures dropped 4.45% to $4,350.2 per ounce [3]. Group 2: Factors Influencing Price Movements - The decline in precious metals was influenced by a rebound in the U.S. dollar, an increase in margin requirements by the CME Group, and technical overbought conditions [3][5]. - The CME Group announced an increase in margin requirements for various metal contracts, which took effect after the market closed on December 29, contributing to the downward pressure on prices [5][8]. Group 3: Market Sentiment and Future Outlook - Analysts expressed concerns about the rapid pace of the recent price increases in precious metals, indicating that the market may be overheated [5]. - Despite the current downturn, there remains a generally optimistic outlook for precious metals, with silver prices having increased by over 185% year-to-date [8]. - Analysts from Heraeus warned that silver and other precious metals prices may decline in the first half of 2026 due to high prices weakening demand across various industries [9].

Core Viewpoint - International gold prices experienced a significant decline after reaching new highs, with various factors contributing to this pullback [5][6][7] Price Movements - As of October 21, the London gold price was reported at $4270.12 per ounce, down 1.96% from the previous day, with a daily high of $4375.49 and a low of $4244.085 [1][2] - COMEX gold futures also saw a decline, trading at $4287.9 per ounce, down 1.64%, with a high of $4393.6 and a low of $4257.7 [3][4] Reasons for the Pullback - A temporary decrease in risk aversion due to improved expectations regarding international trade and signals from the Trump administration about easing tariffs contributed to the decline in gold prices [5] - The recent significant rise in gold prices placed it in an overbought condition, leading some speculative investors to take profits, increasing short-term selling pressure [5] - The Federal Reserve's silence ahead of the interest rate decision limited supportive comments for gold buying, cooling market sentiment [5] - A rebound in the dollar and U.S. Treasury yields increased the holding costs of gold, attracting some funds back to fixed-income assets [5] Future Market Outlook - Short-term gold prices are expected to remain in a state of fluctuation and adjustment, while long-term factors such as strong central bank gold purchases and ongoing inflows into ETFs are likely to support continued price increases [6] - The long-term upward trend in gold prices remains intact, with potential pullbacks seen as buying opportunities, although investors should be cautious of market sentiment and geopolitical risks [7]

Core Viewpoint - Gold prices experienced a significant drop after reaching a historical high of $4,179.47 per ounce, currently fluctuating around $4,125 per ounce, influenced by changing market sentiments and geopolitical tensions [1][3]. Group 1: Market Sentiment and Economic Factors - The U.S. government shutdown, which has entered its third week, continues to create economic uncertainty, with Senate discussions on funding plans failing to meet the required votes [3]. - President Trump's recent comments have eased trade war concerns, boosting investor confidence, yet gold remains strong due to ongoing geopolitical risks, particularly the escalating Russia-Ukraine conflict [3][4]. - The market has fully priced in a 25 basis point rate cut by the Federal Reserve in October, with a 90% probability for another cut in December, providing additional support for non-yielding gold [3]. Group 2: Technical Analysis - Gold prices broke through the resistance area of $4,055-$4,060 and further surged past the $4,100 mark, reinforcing a bullish short-term outlook [4]. - The Relative Strength Index (RSI) indicates severe overbought conditions, suggesting that gold may need to consolidate before further increases [4]. - Any significant technical pullback is likely to be viewed as a buying opportunity, with strong support expected around the $4,060-$4,055 region; however, a drop below this support could trigger technical selling, potentially dragging prices towards the psychological level of $4,000 [4].