Precious metals start 2026 with a surge: expectations of Fed rate cuts boost gold prices, while silver faces correction pressure

NullWhisperer · 2026-01-02T09:58:13+00:00

In the first week of 2026, gold and silver continued to rise strongly, but the market remains cautious about the pressure from the rebalancing of the index. Precious metal prices are supported by expectations of Federal Reserve rate cuts, with analysis predicting gold could reach $4,900 per ounce. However, in the next two weeks, there may be a risk of up to 13% in silver position liquidations, leading to increased volatility.

NullWhisperer

2026-01-02 09:58:13

Abstract generation in progress

【ChainWen】In the first week of trading in 2026, both gold and silver strengthened simultaneously, continuing the best annual rally since 1979. However, the market remains cautious of a potential threat—the rebalancing pressure that may lead to revaluation.

From a technical perspective, the upward momentum of precious metals continues. Traders have noticed that the year-end liquidation wave has gradually dissipated, and the fundamentals are once again driving prices. This suggests that gold is poised to start the new year with an upward trend.

But institutional warnings should not be ignored. Some analysts point out that in the next two weeks, the silver market on the New York Mercantile Exchange could face a total position liquidation of up to 13%, a scale of sell-off sufficient to trigger a significant revaluation of prices. Coupled with the low liquidity after the holiday, volatility may be amplified.

What is the core factor supporting precious metals? The Fed’s rate cut expectations. The market generally expects the Federal Reserve to continue cutting rates, and changes in U.S. policy environment are also influencing market expectations. Against this macro backdrop, several major banks maintain a bullish stance. For example, some institutional baseline forecasts suggest that gold prices could reach $4,900 per ounce, with greater upside risks.

In short, precious metals are currently in a phase supported by fundamentals but also carrying adjustment risks—the key depends on the Fed’s policy pace.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

16 Likes

Reward
16
8
Repost
Share

Comment

0/400

TaxEvader

· 01-05 09:45

That 13% liquidation volume in silver... how aggressive is that? Probably about to break through, right?

View OriginalReply0

FadCatcher

· 01-05 05:08

The 13% liquidation in silver really couldn't hold, it's easiest to get chopped when liquidity is low. Gold is okay, but how long can the rate cut expectations last... Will the Federal Reserve really continue to loosen? Waiting to see the data in mid-January, those entering now are all gamblers.

View OriginalReply0

HashBard

· 01-04 16:49

ngl the silver liquidation thesis is giving "rug pull energy" but like... fed pivot narrative still holds? 🤔 this rebalance thing feels like the market's way of testing who actually believes the thesis lol

Reply0

BlockTalk

· 01-02 10:28

The 13% plunge in silver... just thinking about it makes my scalp tingle. I need to stay steady in the next two weeks. The Fed's rate cut expectations have really supported gold prices, but when liquidity is low, it's the easiest to be cut. I'm convinced by gold's surge, but silver's recent correction pressure is indeed significant. Watch out for stop-losses. Best increase since 1979? This data is a bit intense. It feels like it's reserving space for a subsequent decline. The rebalancing of the index always pops up when everyone is most excited. It's really annoying.

View OriginalReply0

ForkMaster

· 01-02 10:12

13% closing scale? Oh, so that's the "wealth code" everyone talks about. My third kid's mom has seen through it long ago. The recent correction in silver is no wonder the Fed is pressured; mainly it's institutions harvesting retail investors. Basically, they wait for liquidity to hit a low point, then push up the price and dump, an old trick... However, the interest rate cut expectations for gold can still hold up, but we need to watch out for falling into the rebalancing trap.

View OriginalReply0

WenMoon42

· 01-02 10:11

Is this wave of silver going to fall? How can the 13% liquidation volume be sustained? The Fed's rate cut expectation is really attractive, but with such poor liquidity, are you still willing to take the risk? Gold has surged for a year, and this point makes me a bit anxious. The expectation of rate cuts is a strong support, but the risk of a technical liquidation is also very real. The strongest year since 1979, and now in 2026, an adjustment is coming? That's a bit outrageous. With such pressure on silver, it's better to hold tight to gold for safety. Let's wait and see if liquidity can recover before deciding whether to add more positions.

View OriginalReply0

HodlAndChill

· 01-02 10:09

Gold has already surged so much, how is silver still getting hammered? It's really outrageous. With such strong expectations of rate cuts, will the Federal Reserve actually follow through? I personally don't believe it. 13% liquidation volume? What if they dump the market then? Small investors will be the ones getting harvested. The best year since 1979, sounds unbelievable. Feels like this rally is just fake. Let's wait and see. Once liquidity flows in, the true test will be revealed.

View OriginalReply0

UnluckyLemur

· 01-02 09:59

The recent correction in silver has been quite intense, with a 13% liquidation volume—no joke... However, the logic of the Federal Reserve cutting interest rates remains solid. Short-term fluctuations should be seen as buying opportunities.

View OriginalReply0