After intense volatility, the precious metals market finally has a chance to breathe. In this final sprint towards 2025, the fluctuations have been unprecedented. After silver plummeted over 9% in the previous trading day, it rebounded by more than 3% on Tuesday; gold was not to be outdone, rising 0.6%, finally reversing a more than 4% plunge on Monday. Signals of stabilization at low levels have been clearly released.

The crazy sell-off in precious metals is not really a mystery—initial speculative frenzy combined with expectations of tight supply pushed prices to record highs. A deep correction after a sharp surge is actually quite normal.

As precious metals regain strength, other metal commodities are also benefiting. Copper prices are supported by supply chain pressures, with a fierce rebound in December, and are on track to set the longest consecutive rally since 2017; Indonesia’s supply reduction plans have already begun to be implemented, and nickel prices have responded, reaching a new high since March. The enthusiasm in the base metals sector continues to flow steadily.

What truly stirs the market? It’s still the Federal Reserve’s affairs. Trump’s recent statements have become a trigger—he claims a new Fed chair has already been chosen but not announced yet, even hinting at the possibility of replacing Chair Powell. Once this news broke, investors all tuned in, closely watching the direction of US interest rates and monetary policy. Wall Street rate strategists generally believe that even if the Fed begins to cut rates in 2026, US bond yields could remain stable or even rise. Therefore, interest rate logic remains the market’s guiding principle.

The Federal Reserve’s December meeting minutes will be released Tuesday evening. The 10-year US Treasury yield is currently stable at a certain level, having fallen back 2 basis points to 4.11% in the previous trading day. These minutes are sure to be a key factor in market turning points.

From a global asset allocation perspective, rotation effects are becoming more evident. Bitcoin surged close to $90,000 in the last trading day but quickly reversed, with volatility continuing to escalate; the US dollar index slightly retreated, providing additional support for the recovery of precious metals.