On Tuesday, spot gold was trading near USD 4,328/oz after precious metals saw a sharp pullback on Monday. Silver and platinum retreated aggressively after hitting fresh record highs intraday, with silver falling back toward USD 71/oz after briefly touching an all-time high of USD 83.94/oz, as investors moved to lock in profits ahead of year-end.
Meanwhile, WTI crude traded near USD 57.77/barrel, with oil prices rising as renewed uncertainty in the Russia–Ukraine conflict and escalating tensions in Yemen raised concerns over Middle East oil supply, lifting the geopolitical risk premium.
Gold
Spot gold plunged 4.5% on Monday, settling at USD 4,330.79/oz, while February US gold futures fell 4.6% to USD 4,343.60/oz. Losses were even steeper across other precious metals.
- Platinum collapsed 14.5% to USD 2,096.53/oz
- Silver tumbled 9.5% to USD 71.66/oz
- Palladium plunged 15.9% to USD 1,617.47/oz
All precious metals pulled back sharply after recently reaching record or multi-year highs.
David Meger, Head of Metals Trading at High Ridge Futures, noted:
“What we’re seeing is a profit-taking driven correction after prices reached extremely elevated levels.”
Silver remains the standout performer this year, up roughly 147% year-to-date, supported by its designation as a critical mineral, persistent supply shortages, and strong industrial and investment demand. Gold has gained around 65% in 2025, while platinum and palladium are also on track for strong annual performances.
Despite the sharp correction, medium- to long-term sentiment remains constructive. Meger added that constrained silver supply continues to be a key factor and that outlooks for 2026 remain positive.
TD Securities commodity strategist Daniel Ghali pointed out that declining liquidity also contributed to the selloff, citing thin holiday trading conditions and uncertainty surrounding upcoming recommendations from the Trump administration related to critical minerals investigations.
Analysts broadly agree that the move represents a technical correction rather than a trend reversal, with longer-term fundamentals such as geopolitical uncertainty, global economic risks, and inflation-hedging demand still providing structural support.
Gold Technical Outlook
On the 4-hour chart, prices showed signs of stabilization after a modest rebound, while the hourly timeframe suggests short-term consolidation following extended narrow-range trading. Short-term moving averages have begun to curl higher, with prices gradually reclaiming these levels, indicating potential for a near-term rebound.
That said, upside momentum on the 4-hour timeframe remains limited, with prices capped near the 4,362 resistance level. Following Monday’s breakdown and acceleration lower, a rebound followed by renewed downside pressure remains the base case. With profit-taking still active, and unlike the prior multi-session rally, this week’s sharp opening selloff reinforces a sell-on-rallies bias.
Today’s Gold Focus
Trading bias:
Sell on rebounds, buy on deeper pullbacks.
- Immediate resistance: 4,365–4,370
- Key support: 4,300–4,280
Crude Oil
Oil prices rose sharply on Monday as geopolitical tensions intensified, reigniting supply disruption concerns. Fresh developments in the Russia–Ukraine conflict and escalating instability in Yemen lifted risk premiums across energy markets.
By the close:
- Brent crude gained 2.1% to USD 61.94/barrel
- WTI crude climbed 2.4% to USD 58.08/barrel
Russia accused Ukraine of launching a drone attack on President Putin’s residence and announced it would reassess its peace negotiation stance. Ukraine denied the allegations, suggesting Moscow was seeking justification for further military action.
Earlier, Ukrainian President Volodymyr Zelensky stated that talks with US President Donald Trump had made progress, with further negotiations expected next week. Analysts at Ritterbusch and Associates noted that unless Russia unexpectedly softens its territorial and security demands, oil prices could remain supported in the near term.
Middle East risks also returned to focus. A Saudi-led coalition issued warnings to major separatist forces in southern Yemen to halt military operations. Gelber & Associates highlighted that renewed instability in the region continues to sustain supply disruption risks.
Additionally, UBS analyst Giovanni Staunovo pointed out that China’s seaborne crude imports remain robust, providing further support to oil prices.
Oil Technical Outlook
Crude staged a strong rebound on Monday, with prices briefly testing the 58.30 area before closing higher on the daily chart. While oil appears to be forming a base consolidation, the broader trend remains bearish.
Today’s Focus
Trading bias:
Buy on pullbacks, sell into rallies.
- Immediate resistance: 59.0–60.0
- Key support: 56.5–55.5
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