Precious metals markets saw strong moves during the Asian trading session, with gold extending its gains while silver surged to a new all-time high, driven by rising concerns over the outlook for the U.S. economy, which revived demand for hedging instruments.
Gold’s advance was supported by declining confidence in the strength of U.S. economic data, as the yellow metal rose about 0.8% in spot trading, moving closer to testing its historical highs. This came as investors continued to rebalance portfolios in anticipation of further economic volatility.
Silver, meanwhile, stood out with an exceptional performance, posting sharp gains that lifted prices to record levels. The rally was fueled by growing expectations of a supply deficit in 2026, along with its designation as a strategic metal, which boosted investment demand as a lower-cost hedging alternative to gold.
Optimism also spread across other metals, with platinum benefiting from improved hedging appetite, while copper found support from expectations of additional stimulus measures in China, helping to limit downside pressure on prices.
On the macroeconomic front, recent U.S. indicators reinforced market caution after the unemployment rate rose to its highest level in four years, alongside weak purchasing managers’ index readings and slowing retail sales growth, reopening debate over the strength of the economic recovery.
These developments coincided with ongoing concerns over liquidity conditions in U.S. markets, particularly after the Federal Reserve resumed Treasury bond purchases, supporting expectations for a more accommodative monetary policy stance in the period ahead.
Despite better than expected employment figures in November, the rise in the unemployment rate to 4.6% diluted the report’s positive impact, especially given distortions caused by the previous government shutdown. As a result, investors remained cautious in interpreting the data and refrained from fully repricing monetary policy expectations. In this context, upcoming inflation data remains the key driver for market expectations, as it is expected to provide clearer signals on the U.S. economy’s ability to withstand less accommodative policy settings.
Against this backdrop, precious metals remain supported over the medium term, with markets closely focused on upcoming U.S. inflation figures, which could prove pivotal in shaping monetary policy expectations and broader investor sentiment in the period ahead.
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