The precious metals market has been a bit crazy lately. In the early hours of December 23, the price of gold surged straight to $4498 per ounce, once again setting a new historical record. Even more astonishingly, this is the 50th time this year that it has reached a new high.

The logic of funds is very simple: no longer waiting for a pullback, just chase in directly.

Why is gold so fierce? There is not just one reason behind it, but several anxieties exploding simultaneously. Changes in trade policy have made the global economic situation tense again, and geopolitical issues are being triggered one after another. At the same time, the world is entering a rate-cutting cycle, with the Federal Reserve already taking action consecutively, and it may continue to ease in 2026.

When these factors come together, the market's problems become very real: Will the dollar continue to depreciate? How long can the global debt system hold up? The answer points in one direction - first, convert money into gold, and then proceed with caution.

Silver is truly outrageous. The spot price has already approached $70/ounce, with an increase of over 120% since the beginning of 2025. More importantly, the supply side is tightening — Shanghai Futures Exchange inventories have fallen to a ten-year low, and international COMEX registered inventories are more than 70% lower than in 2020.

And the demand side simply can't stop. AI data centers, solar panels, electric vehicles - these industries are all frantically absorbing silver. Coupled with a bunch of importers hoarding large amounts in advance to avoid tariffs, the result is that spot prices have left futures behind, making short squeeze markets a daily occurrence.

How long can this supply-demand mismatch last? The market is still watching.