KEY HIGHLIGHTS
- Gold and silver rebounded slightly after one of their sharpest sell-offs in years.
- Silver’s volatility stunned markets, swinging over 11% in a single day.
- Longer-term bullish targets remain intact despite near-term turbulence.
If you thought precious metals only go up, Dec 29 was a sharp reality check. Gold and silver both suffered sudden, aggressive sell-offs overnight, wiping out days of gains in a matter of hours and shaking even seasoned traders.
That said, by Dec 30, some calm returned. Prices clawed back part of the losses during Asia trading, including here in Singapore, suggesting this may be more of a breather than a full reversal.
How bad was the plunge?
Gold briefly slid as much as 5% in one day — its biggest intraday drop since October 2021. Silver was hit far harder, tumbling 11%, its steepest one-day fall since September 2020. This came just one session after both metals were trading near record highs.
By 1.41pm Singapore time on Dec 30, spot gold rebounded 1.1% to US$4,378.29 per ounce (about S$5,900), while spot silver jumped 3.7% to US$74.85 per ounce (around S$101). Not a full recovery, but enough to cool panic selling.
| Metal | Peak Move (Dec 29) | Latest Price (Dec 30, SG Time) | 2025 Gain So Far |
|---|---|---|---|
| Gold | Fell 5% intraday | US$4,378.29/oz | +66% |
| Silver | Fell 11% intraday | US$74.85/oz | +154% |
| Platinum | Biggest-ever one-day drop | US$2,174.91/oz | Strong YTD |
| Palladium | Fell 16% in a day | US$1,614.00/oz | Volatile |
Why gold has been on fire in 2025
Gold’s 66% surge this year didn’t happen by accident. Rate cuts from major central banks, expectations of further US policy easing, and ongoing geopolitical tensions have all driven investors into safe-haven assets.
On top of that, central banks have been buying aggressively, while gold-backed ETFs saw steady inflows. For Singapore investors, this explains why gold prices in SGD terms feel painfully high — jewellery, bullion, and even savings plans have all become noticeably more expensive.
Silver’s rally is a different beast altogether
Silver has been the real shocker, soaring 154% year-to-date. Unlike gold, silver isn’t just about safe-haven demand. Its inclusion on the US critical minerals list, combined with tight supply and rising industrial usage, pushed inventories to uncomfortable lows.
Things went slightly overboard when silver shot above US$84 per ounce, driven by heavy Chinese buying. At one point, Shanghai silver traded at a premium of more than US$8 per ounce over London prices — the widest gap ever recorded. That kind of move rarely ends quietly.
Exchanges step in to cool speculation
After the chaos, exchanges moved fast. CME Group announced higher margin requirements for certain COMEX silver futures contracts starting Dec 29.
In simple terms, traders now need to put up more cash to hold positions. That forces weaker hands to reduce or exit trades, which usually dampens wild price swings. According to China Futures analystsz analyst Wang Yanqing, the move should help cool excessive speculation.
What analysts are saying next
Despite the drama, some analysts remain firmly bullish. Oanda senior market analyst Kelvin Wong expects the broader uptrend to continue.
His six-month targets:
- Gold: US$5,010 per ounce
- Silver: US$90.90 per ounce
Historically, precious metals also tend to perform well into year-end and early January. Over the past 10 years, gold has averaged about 4% gains during this period, while silver typically adds close to 7%.
What this means for Singapore investors
Honestly speaking, volatility like this is uncomfortable — especially if you bought near the top. But sharp pullbacks after a strong run are not unusual, particularly for silver.
For most Singaporeans, this episode is a reminder not to chase prices blindly. Whether you’re holding physical bullion, ETFs, or exposure through trading platforms, risk management matters more than headlines.
Frequently Asked Questions
Should Singapore investors panic-sell gold or silver now?
No need to overthink. Short-term swings are normal after big rallies. Unless your position is overleveraged, knee-jerk selling usually locks in losses.
Is silver riskier than gold?
Yes. Silver is far more volatile due to lower liquidity and industrial demand swings. Big gains can come with equally big drops.
Is it better to buy precious metals in SGD or USD?
Prices are globally set in USD, but Singapore investors should always factor in FX movements when calculating real returns in SGD.
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