\n Technical indicators suggest the market may be overheating.\n <\/p>\n
Gold traded in a narrow range after last week\u2019s sharp selloff in precious metals, as easing US-China tensions lifted market sentiment.\u00a0<\/p>\n
Bullion fluctuated before trading little changed as Asian markets opened Monday, extending the volatility that followed Friday\u2019s 1.7% drop \u2014 the steepest daily loss since May. Silver edged higher, after closing 4.3% lower in the previous session.\u00a0<\/p>\n
Technical indicators, including the relative strength index, suggest the powerful rally in precious metals since August \u2014 which drove gold and silver to record highs last week \u2014 may be overheating, paving the way for a pullback.\u00a0<\/p>\n
Traders are now looking to\u202fupcoming discussions\u202fbetween the US and China. President Donald Trump late last week expressed optimism that talks with Beijing could yield an agreement to defuse the trade crisis, calling his threatened high levies\u202funsustainable. Tangible signs of progress may cool demand for haven assets, such as gold and silver.\u202f\u00a0<\/p>\n
Still, investors remain uneasy about credit risks at US financial institutions after two regional lenders last week\u202frevealed loan troubles\u202ftied to alleged fraud. The problems at Zions Bancorp and Western Alliance Bancorp \u2014 both due to report results this week \u2014 may offer\u202fan early test\u202fof whether risky lending practices are emerging.\u00a0<\/p>\n
Precious metals have been on a tear this year, with gold registering a ninth straight week of gains. Prices are up more than 60% so far in 2025, underpinned by central-bank buying and inflows to exchange-traded funds. They\u2019ve also benefited from soaring demand for havens in the face of geopolitical and trade tensions, rising fiscal and debt levels, and threats to the Federal Reserve\u2019s independence.\u202f\u00a0<\/p>\n
Prices of gold may climb as high as $5,000 an ounce in 2026 as a new group of institutional and high net-worth individuals join the rally, HSBC Holdings Plc analyst James Steel said in a research note on Friday. That\u2019s also likely to increase market volatility next year, he added.\u00a0<\/p>\n
Silver, meanwhile, has run even harder \u2014 surging around 80% this year \u2014 with gains driven by some of the same macro factors supporting gold. In London, a lack of liquidity sparked a worldwide hunt for the metal as benchmark prices soared above futures in New York.\u00a0<\/p>\n
Over the past two weeks, more than 20 million ounces of silver have been withdrawn from warehouses linked to the Comex futures exchange in New York. Much of that is likely headed to London, where it should help ease tightness. The price gap between the two trading hubs remains wide at about $1.15 an ounce, though that\u2019s much narrower than a spread of as much as $3 last week. There was also a hefty 10 million ounce outflow from silver-backed ETFs on Thursday.\u00a0<\/p>\n
Spot gold was little changed at $4,259.32 an ounce at 9:41 a.m. in London. The Bloomberg Dollar Spot Index was flat. Silver edged up 0.3% to $52.08 an ounce \u2014 after touching an all-time high of $54.4796 an ounce on Friday. Platinum fell and palladium steadied.\u00a0<\/p>\n
\u00a9\u202f2025\u202fBloomberg L.P.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Technical indicators suggest the market may be overheating. Gold traded in a narrow range after last week\u2019s sharp…\n","protected":false},"author":2,"featured_media":213016,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,467,56,54,55],"class_list":["post-213015","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/213015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=213015"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/213015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/213016"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=213015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=213015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=213015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}