Recently, the precious metals market has truly heated up. Some netizens shared that their silver funds purchased in late September have risen nearly 70% in this wave of market movement, with one futures fund even gaining 100% after entering the market. Waking up to find an 180,000 yuan profit—such things are really happening.

The data is even more astonishing. On December 26, London gold spot prices surged to $4,549.9 per ounce, hitting a new all-time high; silver was even more aggressive, reaching a peak of $79.4 per ounce intraday, with an annual increase of over 174%. The domestic market is also not calm, with Chow Tai Fook, Chow Sang Sang, and Lao Feng Xiang’s pure gold jewelry prices reaching a historic high of 1,413 yuan per gram. Chow Sang Sang is not to be outdone, quoting 1,407 yuan per gram.

Behind this global precious metals feast, several factors are working together. The first is the continued rise in expectations of interest rate cuts—by 2025, the Federal Reserve has already cut rates three times, with a total reduction of 75 basis points. Due to a soft employment market, market expectations for further easing remain strong.

Supply and demand imbalance is also key. The prices of silver and gold are highly correlated, reflecting a synchronized influx of funds into the precious metals sector, but silver also has additional industrial demand support. Data shows that since 2021, the silver market has been in a state of supply shortage, with global inventories falling to a ten-year low. This long-term supply pressure has directly driven prices higher.

Additionally, uncertainties in tariff policies, repeated geopolitical conflicts, and the ongoing trend of de-dollarization all boost safe-haven demand. Coupled with the long-term trend of central banks increasing their holdings, and a large influx of speculative capital, gold prices are naturally on a continuous rise. The convergence of multiple factors makes the outlook and sustainability of this precious metals rally worth paying close attention to.