Gold and silver prices have steadily climbed, reaching new all-time highs.
Gold and silver prices surged significantly during the U.S. early trading session on Tuesday (December 23), hitting new all-time highs. In this holiday-shortened trading week, risk-averse buying dominated the market due to heightened geopolitical tensions, particularly between the U.S. and Venezuela. The February gold futures contract rose by $4.5, closing at $4,473.9 per ounce, while the March silver futures contract gained $0.665, settling at $69.23 per ounce.
Record-breaking performance
In overnight trading, the February gold futures contract on the CME Group climbed to a record high of $4,530.80 per ounce, while the March silver futures contract reached an all-time peak of $70.155 per ounce. This year, gold has already marked its 50th record-breaking trading day, with cumulative gains reaching 70%, poised for its strongest annual rally since 1979. Meanwhile, silver’s year-to-date rise exceeds 130%.
Trump Warns Venezuelan Leader
President Trump warned Venezuelan President Nicolás Maduro against provoking the United States and vowed to withhold oil seized from a supertanker. When asked whether he would attempt to overthrow Maduro, Trump responded, “That depends on him.” The U.S. has intensified its blockade of oil tankers traveling to and from Venezuela, boarding an unsanctioned vessel and tracking another tanker near the Venezuelan coast. Since the Trump administration escalated efforts to target sanctioned vessels in order to curb Caracas’ crude oil revenues, more than a dozen tankers have loaded oil off the Venezuelan coast. According to maritime intelligence firm Kpler, approximately 14 ships completed loading after December 11, with at least six being sanctioned vessels, and most loading operations occurred at Bajo Grande and Puerto Jose ports.
Russia-Ukraine conflict persists as peace talks stall
Despite ongoing peace negotiations, Russia continues to attack Ukraine. Russian forces launched missile and drone strikes across Ukraine, causing civilian casualties and hitting energy infrastructure. Ukrainian President Volodymyr Zelenskyy stated that the attacks spanned multiple regions of Ukraine, involving approximately 650 drones and over 30 missiles, occurring “during negotiations”—shortly after Ukraine’s negotiating team returned from talks with U.S. officials in Florida. On Tuesday, Zelenskyy wrote on X: “Russia’s attack sent an extremely clear message about its true priorities.” He strongly condemned the strike, which occurred on Christmas Eve when people simply wanted to reunite with their families and stay safe at home. Diplomatically, the Trump administration has been pressuring Kyiv to reach a peace agreement with Russia, with Trump stating that efforts are underway. When asked whether Washington, Kyiv, and Moscow might hold trilateral talks, the U.S. leader responded to reporters in Florida that negotiations are “ongoing.”
Key External Market Dynamics
In today’s key external markets, the U.S. dollar index declined; crude oil prices remained largely flat, trading around $58.00 per barrel; and the benchmark 10-year U.S. Treasury yield currently stands at 4.15%.
Technical Analysis
From a technical perspective, the next upside target for the bulls in February gold futures is a close above the strong resistance level of $4,600.00. For the bears, the near-term downside objective is to push futures prices below the solid technical support level of $4,300.00. The first resistance level is the overnight record high of $4,530.80, followed by $4,550.00; the first support level is the overnight low of $4,479.80, followed by $4,450.00.
The next upside price objective for the March silver futures bulls is a close above the firm technical resistance level of $75.00 per ounce; the next downside price objective for the bears is a close below the solid support level of $65.00 per ounce. The first resistance level is the overnight historic high of $70.155, followed by $71.00. The next support level is the overnight low of $68.965, followed by this week’s low of $67.47.
Note: The gold market operates primarily through two pricing mechanisms: the spot market, which provides quotes for immediate purchase and delivery, and the futures market, which determines prices for future delivery. Influenced by year-end position adjustments and market liquidity conditions, the most actively traded contract on the CME Group (Chicago Mercantile Exchange) is currently the December gold futures contract.
