Emre Yumlu 
As global markets move deeper into the year-end holiday period, trading volumes have thinned considerably, amplifying price swings across asset classes. Precious metals have been no exception. After experiencing sharp selling pressure in the previous session, gold prices staged a recovery as low liquidity intensified short-term volatility. Despite these fluctuations, investor confidence in the medium- and long-term outlook for gold remains largely intact.
Sharp Pullback Followed by a Rebound in Gold Prices
Spot gold reached a historic high of $4,549.71 per ounce on Friday before reversing sharply on Monday. The decline pushed prices to their lowest level since December 17 and marked the steepest single-day drop since October 21. However, the correction proved short-lived. On Tuesday, spot gold rebounded by 1.1%, climbing to $4,389.29 per ounce.
February gold futures in the United States mirrored this recovery, also rising 1.1% to trade around $4,392.0. Market participants noted that reduced participation during the holiday period exaggerated price movements, making both rallies and sell-offs more pronounced than usual.
Technical Indicators Signal Cooling Momentum
From a technical perspective, the recent pullback was supported by momentum indicators. The Relative Strength Index (RSI) for both gold and silver moved lower on Monday after entering overbought territory. This shift suggested that the correction was, at least in part, a healthy adjustment following an extended rally rather than a fundamental trend reversal.
Gold has delivered an impressive 66% gain throughout 2025, supported by a combination of factors. Expectations of interest rate cuts, prospects for further monetary easing in the United States, ongoing geopolitical uncertainties, strong central bank demand, and increased inflows into exchange-traded funds have all contributed to the metal’s strength. Looking ahead, markets are pricing in at least two U.S. rate cuts in 2026, a scenario that typically favors non-yielding assets such as gold.
Silver and Platinum See Heightened Volatility
Silver experienced even more dramatic price action. Spot silver surged to an all-time high of $83.62 per ounce on Monday before facing heavy selling pressure. Although prices rebounded 3.7% on Tuesday to $74.85, the metal had suffered its largest daily decline since August 2020 in the prior session. Notably, silver is up 154% year-to-date, significantly outperforming gold.
Platinum followed a similar pattern. After hitting a record $2,478.50 per ounce on Monday, the metal recorded its sharpest daily drop on record before rebounding 3.1% to $2,174.91 on Tuesday.
Overall, while thin liquidity continues to drive sharp short-term swings, investor sentiment across precious metals remains broadly constructive for the medium and long term.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.