Safe-haven buying drove gold prices up and silver prices soared to record highs.
2025-12-18 01:38:05
Gold prices edged higher in midday trading on Wednesday (December 17) Eastern Time, while silver prices surged, with March Comex silver futures hitting a record high of $66.87 per ounce. During the midweek session, safe-haven demand and technical buying were the main factors supporting the prices of both metals. February gold futures (generally ten dollars higher than spot gold) were last quoted at $4,368.1 per ounce, up $35.8; March silver futures were at $66.715 per ounce, up $3.392.
Silver prices have risen by nearly 130% so far this year, a surge partly driven by tightening silver inventories and strong retail and industrial demand – particularly from the rapidly expanding solar, electric vehicle, and data center sectors.
The US's tough stance triggered safe-haven buying of gold and silver, while crude oil prices also rose after the US blockaded oil tankers entering and leaving Venezuela. President Trump ordered the blockade of sanctioned oil tankers entering and leaving Venezuela, further pressuring the country amid increased US military presence in the region. "Venezuela is now completely surrounded by the largest fleet in South American history," Trump posted on social media on Tuesday. "This fleet will continue to expand, and the impact it will have on them will be unprecedented." This move could sever the economic lifeline of the already financially strained nation, but its impact on global markets is relatively limited due to the significant decline in Venezuela's oil industry. The OPEC member's crude oil production has fallen by about 70% during more than 25 years of socialist rule, and currently produces less than 1 million barrels per day. Trump also declared the Maduro regime a "foreign terrorist organization." He accused the "illegitimate regime" on social media of "using oil from stolen oil fields to finance its activities, including drug terrorism, human trafficking, murder, and kidnapping." Crude oil futures prices on the New York Mercantile Exchange (Nymex) rose as much as 1.7% to around $56.50 a barrel, rebounding from an eight-month low; meanwhile, news of potential new sanctions against Russian energy also boosted oil prices.
If Putin rejects a peace agreement, the United States will further sanction Russia's energy sector. According to sources familiar with the matter, the US is preparing a new round of sanctions against Russia's energy sector to increase pressure on Moscow should President Putin refuse to reach a peace agreement with Ukraine. These anonymous sources, who revealed details of private discussions, said the US is considering several sanctions, including those targeting oil tankers used to transport Russia's so-called "shadow fleet" and traders facilitating these transactions. Some sources said the new sanctions could be announced as early as this week. US Treasury Secretary Bessent discussed the plans earlier this week when he met with ambassadors from several European countries. Bessent posted on social media platform X: "President Trump is a peace president, and I reiterate that under US leadership, the United States will continue to prioritize ending the war in Ukraine." According to Interfax news agency, Kremlin spokesman Dmitry Peskov told reporters on Wednesday that the Kremlin is aware that some US officials are considering new sanctions against Russia. He said, "Clearly, any sanctions would not be conducive to the rebuilding of bilateral relations."
Key external market developments today: The US dollar index strengthened, but has retreated from its earlier highs; crude oil prices rose, trading around $56.25 per barrel; the benchmark 10-year US Treasury yield is currently at 4.155%.
(COMEX Gold 4-hour chart source: EasyForex)
From a technical perspective, the next upside target for February gold futures bulls is a close above the key resistance level – the contract's all-time high of $4,433.00 per ounce; the near-term downside target for bears is to push futures prices below the key technical support level of $4,200.00 per ounce. The first resistance level is seen at the December high of $4,387.80 per ounce, followed by $4,400.00 per ounce; the first support level is seen at today's low of $4,330.70 per ounce, followed by this week's low of $4,297.40 per ounce.
(COMEX silver 4-hour chart source: EasyTrade)
For March silver futures, the next upside target for bulls is a closing price break above the key technical resistance level of $70.00 per ounce; for bears, the next downside target is a closing price break below the key support level of $60.00 per ounce. Resistance is seen at $67.00 per ounce; the next support level is seen at $65.00 per ounce, followed by the overnight low of $63.725 per ounce.
Note: The gold market operates primarily through two pricing mechanisms. The first is the spot market, where prices are applicable to immediate purchase and delivery; the second is the futures market, which sets prices for delivery on a specific future date. Due to year-end position adjustments and market liquidity, the most actively traded gold futures contract on the Chicago Mercantile Exchange (CME) is currently the December contract.
Silver prices have risen by nearly 130% so far this year, a surge partly driven by tightening silver inventories and strong retail and industrial demand – particularly from the rapidly expanding solar, electric vehicle, and data center sectors.
The US's tough stance triggered safe-haven buying of gold and silver, while crude oil prices also rose after the US blockaded oil tankers entering and leaving Venezuela. President Trump ordered the blockade of sanctioned oil tankers entering and leaving Venezuela, further pressuring the country amid increased US military presence in the region. "Venezuela is now completely surrounded by the largest fleet in South American history," Trump posted on social media on Tuesday. "This fleet will continue to expand, and the impact it will have on them will be unprecedented." This move could sever the economic lifeline of the already financially strained nation, but its impact on global markets is relatively limited due to the significant decline in Venezuela's oil industry. The OPEC member's crude oil production has fallen by about 70% during more than 25 years of socialist rule, and currently produces less than 1 million barrels per day. Trump also declared the Maduro regime a "foreign terrorist organization." He accused the "illegitimate regime" on social media of "using oil from stolen oil fields to finance its activities, including drug terrorism, human trafficking, murder, and kidnapping." Crude oil futures prices on the New York Mercantile Exchange (Nymex) rose as much as 1.7% to around $56.50 a barrel, rebounding from an eight-month low; meanwhile, news of potential new sanctions against Russian energy also boosted oil prices.
If Putin rejects a peace agreement, the United States will further sanction Russia's energy sector. According to sources familiar with the matter, the US is preparing a new round of sanctions against Russia's energy sector to increase pressure on Moscow should President Putin refuse to reach a peace agreement with Ukraine. These anonymous sources, who revealed details of private discussions, said the US is considering several sanctions, including those targeting oil tankers used to transport Russia's so-called "shadow fleet" and traders facilitating these transactions. Some sources said the new sanctions could be announced as early as this week. US Treasury Secretary Bessent discussed the plans earlier this week when he met with ambassadors from several European countries. Bessent posted on social media platform X: "President Trump is a peace president, and I reiterate that under US leadership, the United States will continue to prioritize ending the war in Ukraine." According to Interfax news agency, Kremlin spokesman Dmitry Peskov told reporters on Wednesday that the Kremlin is aware that some US officials are considering new sanctions against Russia. He said, "Clearly, any sanctions would not be conducive to the rebuilding of bilateral relations."
Key external market developments today: The US dollar index strengthened, but has retreated from its earlier highs; crude oil prices rose, trading around $56.25 per barrel; the benchmark 10-year US Treasury yield is currently at 4.155%.
(COMEX Gold 4-hour chart source: EasyForex)
From a technical perspective, the next upside target for February gold futures bulls is a close above the key resistance level – the contract's all-time high of $4,433.00 per ounce; the near-term downside target for bears is to push futures prices below the key technical support level of $4,200.00 per ounce. The first resistance level is seen at the December high of $4,387.80 per ounce, followed by $4,400.00 per ounce; the first support level is seen at today's low of $4,330.70 per ounce, followed by this week's low of $4,297.40 per ounce.
(COMEX silver 4-hour chart source: EasyTrade)
For March silver futures, the next upside target for bulls is a closing price break above the key technical resistance level of $70.00 per ounce; for bears, the next downside target is a closing price break below the key support level of $60.00 per ounce. Resistance is seen at $67.00 per ounce; the next support level is seen at $65.00 per ounce, followed by the overnight low of $63.725 per ounce.
Note: The gold market operates primarily through two pricing mechanisms. The first is the spot market, where prices are applicable to immediate purchase and delivery; the second is the futures market, which sets prices for delivery on a specific future date. Due to year-end position adjustments and market liquidity, the most actively traded gold futures contract on the Chicago Mercantile Exchange (CME) is currently the December contract.
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