Precious metals hit consecutive new highs, with silver futures breaking through $101—three driving forces behind this surge

Silver futures once again hit new records after two consecutive days of strong performance. According to the latest news, New York silver futures broke through $101/oz, with an intraday increase of 4.80%. Spot gold is quoted at $4985.83/oz, up over 1.00% intraday. This is another breakthrough following the previous day’s silver futures surpassing $100/oz, and market enthusiasm for precious metals continues to rise.

Market Sentiment Behind Continuous Breakthroughs

Geopolitical risk easing becomes a key trigger point

According to the latest news, Trump has reached a framework agreement with NATO Secretary General Stoltenberg on the Greenland issue, temporarily suspending plans to impose additional tariffs on European countries starting February 1. This news spread rapidly in the market and was interpreted as a signal of easing geopolitical tensions.

As safe-haven assets, precious metals’ prices are usually positively correlated with geopolitical risk. When risk environments improve, investors may reduce demand for safe-haven assets but also gain confidence in economic prospects, thereby pushing up commodity prices. According to relevant information, it is precisely due to the combined effects of strong economic data and easing geopolitical risks that precious metals prices have achieved significant gains.

Strong economic data provides fundamental support

According to relevant information, the US November PCE inflation data met expectations, and Trump’s tariff threats have receded. The stable performance of these economic indicators, along with the continued rebound of the three major US stock indices (S&P 500 up 0.55%, Dow Jones up 0.63%, Nasdaq up 0.91%), reinforce market expectations of economic resilience.

In the context of stable economic fundamentals, precious metals not only retain their safe-haven attributes but also receive support from commodity bulls. This dual driving force allows silver futures and gold to break through successive historical milestones.

Fed policy expectations stabilize market sentiment

According to relevant information, the Federal Reserve has cut interest rates three consecutive times in 2025. The current market consensus expects the upcoming meeting next week to maintain the status quo to assess the effects of previous easing measures. Futures traders expect at most two rate cuts in 2026.

This relatively clear policy expectation eliminates market uncertainty, allowing investors to focus more on economic fundamentals. In contrast, expectations of limited further stimulus in the short term have also attracted more attention to risk assets.

Deep Implications of Precious Metals’ Strength

According to relevant information, the strong rebound in precious metals reinforces bullish sentiment in the commodities market, benefiting mining and related industries. However, caution is advised regarding potential pullbacks caused by supply fluctuations.

Follow-up Focus

From personal observation, whether silver futures can continue to stay above $100 will be a key factor in judging the sustainability of the precious metals bull market. If geopolitical risks continue to ease and economic data remains strong, precious metals may continue to explore upward space. But if any of these supporting factors change—especially if geopolitical tensions rise again or economic data deteriorates—precious metals could face rapid corrections.

Summary

The strong performance of precious metals over the past two days, breaking through multiple historical milestones, reflects market optimism about economic prospects and easing geopolitical risks. Silver futures breaking $101 and gold approaching $5000 demonstrate the continued attractiveness of safe-haven assets and the high enthusiasm of commodity bulls. Investors should pay attention to three key variables—geopolitical developments, economic data, and Federal Reserve policies—to assess the sustainability of this wave of precious metals bull market.