Gold has experienced a retracement, putting an end to its record-breaking streak. The value of gold has decreased by approximately 8% from its peak.<\/p>\n
This decline is partly due to market responses to potential shifts in US monetary policy. Despite these retracements, there remains persistent uncertainty in the market amid geopolitical tensions.<\/p>\n
Silver has also seen a reduction, with its value down by about 12% from its peak. While these decreases are noticeable, it is not indicative of a complete halt in the debasement trade or diversification away from the US.<\/p>\n
Looking back to the middle of 2025, we saw gold pull back about 8% from its record highs following a significant streak. This was largely a reaction to market chatter about shifting US monetary policy. That period of consolidation now appears to have been a temporary pause in a longer-term uptrend.<\/p>\n
Currently, gold is again testing those previous highs as persistent inflation remains a key concern for the market. The latest CPI figures from December 2025 showed inflation holding at a stubborn 3.8%, reinforcing the idea that the currency debasement trade is far from over. This environment suggests that any dips in price are likely buying opportunities.<\/p>\n
Given the Federal Reserve’s current “higher-for-longer” stance, we see significant uncertainty, which is elevating implied volatility in gold options. Recent data shows the Gold Volatility Index (GVZ) is up nearly 15% over the last quarter of 2025. Traders should consider buying straddles or strangles on gold ETFs to profit from a large price move, regardless of direction, in the coming weeks.<\/p>\n
The retracement in 2025 showed how sensitive gold is to rate expectations, creating an opportunity for defined-risk bullish strategies. A bull call spread on gold futures is a viable approach to capitalize on further upside while limiting risk. This allows traders to benefit from a potential breakout without being fully exposed to a sudden hawkish shift from the central bank.<\/p>\n
We also recall that silver had an even sharper 12% correction in 2025, highlighting its greater sensitivity to industrial demand. With recent manufacturing PMI data for January 2026 showing some softness, silver may lag gold’s safe-haven performance. This makes a pair trade, going long gold and short silver, an attractive way to isolate the monetary-driven rally from industrial weakness.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold and silver retreat from recent highs amid policy shifts and geopolitical uncertainty, though trends persist.<\/p>\n","protected":false},"author":62,"featured_media":16973,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40538"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40538\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16973"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}