On Monday, December 30, gold retreated from record highs, while silver also retreated from recent gains as investors took profits.
Easing geopolitical tensions likely reduced demand for safe-haven assets.
Spot gold fell 1.7% to $4,455.34 per ounce after hitting a record high of $4,550 on Friday. U.S. gold futures for February delivery lost 1.2%, settling at $4,500.30 per ounce. Spot silver fell 4.6% to $75.47 per ounce after briefly trading at $83.62.
Notably, interest in silver is shifting toward tokenized markets. RWA.xyz data shows that monthly transfer volume for the tokenized version of the iShares Silver Trust (SLV) has increased more than twelvefold, along with a 300% increase in holders and a 40% increase in net asset value.
Tokenized silver allows investors, including non-US citizens, to trade digital tokens representing SLV 24/7.
Since the start of the year, silver has risen 181%, outperforming gold, which has risen 72% over the same period. Traders expect further cuts in US interest rates next year, while analysts note that gold and silver remain sensitive to economic and political changes.
Some analysts noted that short-term volatility was caused by insufficient liquidity during the holiday season, while the long-term outlook remains positive.