The safe-haven properties of gold and silver have weakened, and the market has entered a period of high volatility

An industry report analysis pointed out that the market role of gold and silver is changing, and it has gradually shifted from traditional safe-haven assets to high-volatility investment varieties. After a long-term rise, gold prices have shown a significant correction, which is related to factors such as market leverage adjustment. Data show that global gold demand exceeded 5,000 tons for the first time in 2025, mainly driven by the growth of investment demand. The analysis believes that gold prices may be difficult to break through the previous high in the short term, and the lower support is around $4,400 per ounce.

report writerShield BoThe analysts said that gold and silver are currently exhibiting more high volatility than the previous characteristics of safe-haven assets, marking a shift in the market's investment logic.

In the latest market observation, the team made it clear that gold's attributes have been skewed towards speculation.

Analysts explain: "The trigger for this round of price correction is actually contained in the previous unusually strong rally. For safe haven assets that are usually less volatile, price increases of several times over the past decade are not common. At the same time, the US dollar index remains at the level of many years ago. Such large price declines often occur in tandem with the clearing of leveraged positions, the triggering of stop-loss orders and the increase in margin requirements. At present, many trading institutions are still raising the margin standard of futures trading."

Analysts also looked to the World Gold Council's demand report, which showed global gold demand hitting a new high in 2025. "The sharp increase in investment demand was the main driver, fully compensating for the slowdown in jewellery and industrial demand," they wrote. "Although central bank gold purchases have fallen from previous highs, they remain at historically high levels. Gold demand also reached a quarterly high in the fourth quarter, with investment demand also playing a key supporting role."

They reminded market participants of the need to prepare for larger price swings ahead. "The recent rally in gold prices has been relatively strong, more than half the previous decline, but the momentum has since weakened," analysts said. "However, gold prices are still significantly higher than they were at the beginning of the year, while other precious metals such as silver have not yet shown similar relative strength."

They added: "Gold is less likely to hit a new high in the short term as it may take longer to digest the pressure built up by excessive speculation in the previous period. Gold has found support at $4,400 an ounce, a position that could be tested again in the future."

Gold prices rallied above $5,000 an ounce at the start of the week, followed by a volatile consolidation pattern during trading hours, currently trading around $5,030 an ounce.

(Daily chart of spot gold)

Regarding the silver market, analysts at Dunbo emphasized that,Silver has clearly entered a phase of high volatility。

They said: "Silver rebounded after a sharp decline, but the rebound did not last. During this period, the bargain buying behavior of some investors promoted the inflow of funds into silver-related funds, and the single-day position increased significantly, so that the total position returned to a high level."

They added: "The recent rapid price decline may be related to trading activity in specific markets, which appears to be the result of some investors choosing to rebound and reduce their holdings or take profits. The relevant exchanges have also taken measures such as raising margins."

"After a larger correction in silver prices, the gold-silver ratio has risen to around 64. Just as silver tends to rise more when it rises, it usually falls faster during a correction."

(Daily chart of spot silver)

In recent trading hours, spot silver prices have been volatile lower and are currently trading around $81.69 an ounce.

As of press time, spot gold is quoted at $5,033.14 per ounce.