Summary of "Santa Claus Rally Under the Microscope as Silver and Gold Shake"

Date: 29 December 2025

Overview

The article discusses the Santa Claus Rally, a phenomenon typically observed during the last five trading days of the year and the first two of the new year, where equities often experience upward movement. However, the current market conditions present mixed signals, with some areas showing optimism while others indicate caution.

Precious Metals Performance

Silver has been a focal point, having surged above $80 per ounce late last week, only to experience a sharp decline at the beginning of the current week. This volatility suggests a potential short-term exhaustion or a local top for silver. Gold is also under pressure, trading lower alongside silver, indicating that the entire precious metals complex may be entering a corrective phase after a strong performance.

Currency Market Insights

In the currency market, the Japanese yen and the American dollar are showing strength, which typically reflects a more cautious sentiment among traders. Conversely, European currencies, particularly the New Zealand dollar, are under pressure, indicating a selective risk-off shift rather than a broad sell-off. This suggests a rotation of capital back into safer or more liquid currencies.

Cryptocurrency Trends

Bitcoin is attempting to break out of a symmetric triangle formation to the upside, which is technically encouraging in the short term. However, the overall sentiment in the cryptocurrency market remains fragile, and buyers need to demonstrate that this breakout can be sustained. Currently, it appears more as a recovery attempt rather than the beginning of a new bullish trend.

Fundamental Outlook

The economic calendar for the day is relatively quiet, with the only significant data point being pending home sales from the US, set to be released during the American session. With limited macroeconomic catalysts, trading is expected to be influenced more by technical levels, positioning, and year-end flows rather than new economic developments.

Conclusion

As the Santa Claus Rally period begins, traders are advised to remain vigilant. The heightened volatility, particularly in the metals market, serves as a reminder that year-end trading can be unpredictable.