Galaxy Futures: Both bullish and bearish factors coexist, and gold and silver are expected to remain volatile at high levels

Yesterday’s U.S. stock market performance showed further improvement in risk sentiment. This morning, NVIDIA’s earnings report also performed well, easing concerns about an AI bubble. The US dollar slightly weakened, while gold and silver prices remained relatively strong with high volatility. Additionally, ongoing conflicts in the Middle East, US tariff policies, and economic outlooks remain uncertain, continuing to support gold and silver prices. However, hawkish comments from Federal Reserve officials and the market’s underpricing of Fed rate cuts in the first half of the year have somewhat limited the upside potential for gold and silver. Therefore, it is expected that gold and silver will generally remain volatile with a slight upward bias.

Furthermore, with COMEX March silver delivery approaching, market divergence is significant. On one hand, COMEX silver inventories have decreased notably, suggesting potential short squeeze conditions. On the other hand, the January lease rate for silver has dropped to around 1%, indicating a short-term easing of overseas spot supply and demand. There is no significant backwardation between COMEX silver futures contracts or between COMEX and LBMA silver prices. Although we remain optimistic about medium- to long-term silver prices, short-term uncertainties are high, and proper risk management is advised. (Galaxy Futures)