U.S. economic data releases last week did not change expectations related to the Federal Reserve. Markets are still predicting an 80% chance of a quarter-point Fed rate cut at the upcoming meeting. This sentiment shift is bullish for gold and silver markets, with support from Fed officials and soft economic data.

Recent stock market rebounds suggest a receding risk aversion and potential for a “Santa Claus rally.” This could be bearish for safe-haven metals, as stock indexes hit multi-week lows in late November due to concerns about artificial intelligence and credit sector stress. Gold and silver have shown correlation with stock market trends.

Improving U.S.-China relations between Presidents Trump and Xi Jinping are positive for precious metals markets. A smoother trade relationship could lead to better economic growth globally, boosting consumer and commercial demand for metals. Longer-term technicals remain bullish for gold and silver, with silver prices hitting record highs.

Silver prices reaching record highs suggest a new trading range above $50 an ounce, potentially leading gold towards its record high from October. Positive technical postures and global demand dynamics indicate a bullish outlook for gold and silver markets. Email feedback to Jim Wyckoff and visit Barchart.com for more information.

Read more at Yahoo Finance: A 2-Minute Market Analysis of Gold and Silver