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Gold fell more than 5% in its biggest one-day drop in more than two months. Additionally, silver, platinum and palladium also fell in broad precious metals trading on December 29.
With prices rising today, analysts are divided. Some expected the momentum to continue, while others warned of a change that could benefit crypto assets.
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On December 29, the precious metals market saw A big drop. Gold fell more than 5%, marking its biggest one-day loss since late October 2025.
Silver briefly jumped to record highs near $84 before pulling back sharply It closes at $70.5. This represents a decrease of 16%. Palladium suffered similar declines.
Finally, the value of platinum fell by more than 15%. These declines came amid an explosive rally that saw precious metals hit new highs this month.
“As we said last night, the rally was out of control. Expect more volatility.” published Message Kobesi.
While precious metals have declined, the cryptocurrency market has seen a recovery, with Bitcoin temporarily reaching the $90,000 mark and Ethereum rising to $3,000. This move has led some analysts to speculate that capital turnover has begun.
“Silver is down 11% in the last few hours as cryptocurrencies start to rally. Money is moving from silver and gold to Bitcoin and the broader cryptocurrency market.” Crypto Rover.
However, the pullback in metals was short-lived. Today, the precious metals are once again trading in the green, with the price of gold about 1% in the last 24 hours. Silver jumped For 3%, platinum increased by 2.6%, while palladium continued to post modest losses.
When metals recover, the cryptocurrency market moves in the opposite direction. The total market capitalization fell 0.13% in the last 24 hours, fueling mixed signals and leaving analysts… Divided on what is next for the market.
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The gold chain supports a positive attitude
Many analysts argue that the recent decline in precious metals does not indicate a change in fundamental demand. Expectations are always high It may last until next year.
“This kind of simultaneous decline usually indicates congestion in trade, not a sudden change in the underlying demand for the metals.” said Professional investor.
Additionally, Kobesi’s message highlighted that gold has now traded above its 200-day moving average for about 550 trading days. This was the second longest streak ever recorded.
The only longer period was after the financial crisis of 2008, where gold remained above the level for about 750 trading days. During the current streak, gold prices have increased by 135%, surpassing the 91% increase recorded between 2009 and 2011.
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In comparison, the 1986-1988 cycle lasted about 510 sessions, with a rise of 38%, while the 1978-1980 period saw gold rise by 209% over about 495 sessions.
He added Post : “Gold’s momentum remains historically strong.”
The argument for capital turnover
On the other hand, a market observer noted that strong corrections in gold often affect sentiment and can lead to capital turnover.
“While some expect a recovery, these divergences indicate a deeper shift in market focus, which could benefit other assets like Bitcoin. (BTC)”.
from technical aspectAnalyst Michael van de Poppe noted that several bearish divergences have appeared on different time frames, highlighting the decline in momentum despite recent new highs. description what you do,
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“Gould has corrected significantly… Although the discussion in the room will not be about a prolonged correction, the fact that it fell below the previous ATH is not good. This is probably the stage where many will believe that there is another push on the horizon, while the same group will blame Bitcoin for not going higher. This is the stage in which it is.”
In a separate post, Van de Poppe noted a bullish divergence in the daily chart of Bitcoin and Gold, suggesting that Bitcoin… It is likely to surpass gold In the coming period.
“Similar periods of this bullish divergence: Q3 2024 (before Bitcoin explodes towards the $100,000 mark), Q4 2022 (end of the Bitcoin bear market). The big lineup is on the horizon,” he added.
Therefore, the volatility between precious metals and cryptocurrencies highlights the growing volatility of the market and the growing uncertainty around capital flows. While gold’s long-term trend remains historically strong, technical signals and relative performance suggest that investors are increasingly considering alternative assets.
It remains an open question whether the recent movements represent temporary diversification or the early stages of a broader cycle.
