Gold & silver prices plunge after record highs
|Gold and silver prices saw a steep drop in early U.S. trading Monday, driven by intense profit-taking and the unwinding of long positions by short-term futures traders.
Silver initially touched a new all-time high of $82.67 before sharply retreating to $72, while gold slipped from Friday’s record of $4,584.00 to less than $4,400.
In geopolitical developments, President Trump met with Ukrainian President Volodymyr Zelenskiy, claiming significant progress toward a peace deal with Russia, though unresolved issues like the status of Donbas remain.
Talks of further diplomatic engagement, including trilateral discussions and meetings with European leaders, are expected in January.
Copper prices surged overnight to $5.80 per pound due to supply constraints, briefly reaching record highs on global exchanges before retreating amid profit-taking.
The metal has gained 15% this month and nearly 50% in 2025 overall, driven by tight inventories.
Meanwhile, China’s yuan weakened to 7 per U.S. dollar after recently reaching a 15-month high.
This pullback comes as China's central bank seeks to prevent rapid one-sided currency moves.
Despite this short-term adjustment, analysts expect the yuan’s upward trend to persist into 2026.
Broader markets remained steady, with the U.S. dollar index, crude oil around $58.50 per barrel, and 10-year Treasury yields near 4.12%.
Technically, gold bulls are targeting a close above $4,600, while bears aim for a drop below $4,300.
Key resistance lies at $4,500 and $4,550, with support at $4,454 and $4,433.
Silver’s recent price movement suggests a potential exhaustion pattern, with resistance at the record $82.67 and support at $70.00.
The next few trading sessions will be crucial in determining whether this is a temporary pullback or the start of a broader correction.
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