2025-12-29 02:25:53

The end-of-year financial markets are truly lively. Gold prices are approaching $4,550 per ounce, and silver has surged over 10% in a single day, setting a record high. In the final week of 2025, global markets are both at historic highs and facing the awkward situation of holiday quietness.

The New Year holiday causes major markets to close early or remain closed all day, leading to a significant drop in trading liquidity. In this low-liquidity environment, any small movement can be amplified—especially the December Federal Reserve monetary policy meeting minutes, which, once released, could directly shake market expectations.

Even more interesting is the "three-way division" among global central banks. The Federal Reserve and the Bank of England have chosen to cut interest rates, while the Bank of Japan has increased rates against the trend. Most other central banks, such as the European Central Bank and the Reserve Bank of Australia, have chosen to hold steady. This unprecedented policy divergence has also reshaped our understanding of central bank behavior.

Why is this happening? Ultimately, it’s due to different economic conditions in each country. The US and the UK are facing slowing growth and employment pressures, Japan is on the brink of escaping long-term deflation, and the Eurozone is stuck in an awkward balance of "weak growth + sluggish inflation." Central banks’ policy choices are simply responses to their respective economic realities.

What does this mean for investors? The old approach of making money based on a single central bank’s guidance is outdated. Now, it’s essential to analyze from multiple angles—considering economic resilience, inflation stickiness, and policy credibility. Whether gold and other precious metals can continue last year’s epic rally depends crucially on how events unfold this week.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
4
Repost
Share

Comment

0/400

WealthCoffee

· 6h ago

Silver surges 10%？ With low liquidity, this wave of market movement is really crazy, be careful of getting caught off guard. The divergence in central bank policies is so obvious, betting on just one direction is really easy to get burned, you need to watch multiple markets. Gold price has reached 4550... I need to see what the Federal Reserve minutes say this week, otherwise I can't get a grip. During the holiday market closure, liquidity is poor, be cautious of slippage everyone, entering the market now carries high risk. The European Central Bank is standing pat... probably betting on when to cut rates, so boring. Japan's rate hike is just ridiculous, trying to escape deflation and doing reverse operations, who can make sense of this logic? Can gold continue to surge? It all depends on how the dollar and US bonds move, precious metals are just being led around by the nose. Last year's gold rally was truly crazy profitable, but now that prices are so high, I don't dare to hold a heavy position anymore. Multi-angle analysis is correct, but honestly, how many retail investors have the energy to keep up? It's still faster to follow the trend. Liquidity killer is coming, this week will probably be a bloody lesson, everyone protect your principal.

View OriginalReply0

staking_gramps

· 6h ago

Silver surges 10% in one day? This move is either institutions shaking out the market or liquidity has truly been exhausted and amplified... Playing with such assets in a low liquidity environment is really thrilling. Central banks are each doing their own thing, investors are having a tough time haha, the era of betting solely on one central bank is truly over. The Federal Reserve minutes are coming, there might really be some action this week. Whether precious metals can continue to soar depends on what this document says. Is the ECB's decision to stay put cautious or out of options? Japan's rate hike seems a bit like a show of stubbornness. In a low liquidity environment, can gold's recent rally hold up... I'm a bit worried about the volatility after the holiday.

View OriginalReply0

NullWhisperer

· 6h ago

low liquidity + fed minutes = potential exploit vector tbh. silver up 10% in a day feels like it needs a security audit lol

Reply0

ChainBrain

· 6h ago

Silver surges 10% in one day? Isn't this just gambling... With such poor liquidity, daring to be so volatile is really exciting. Each central bank doing its own thing is truly impressive. The Federal Reserve cuts rates, Japan raises rates—who can keep up... I don't understand, in the end, it all depends on what the Federal Reserve's minutes say. Can last week's rally in precious metals continue this week? I think it's unlikely. During the holiday, with light trading, who dares to take the risk... If the Federal Reserve minutes release hawkish signals this week, gold could be directly halved. Low liquidity environment makes this especially challenging. The divergence among multiple central banks is actually the real time bomb. The European Central Bank holding steady is actually out of helplessness...

View OriginalReply0