Gold & Silver rebound after earlier decline, surge to new intraday peaks – OCBC

Gold and Silver Reach New Session Highs After Initial Decline

Gold and silver prices rebounded from an earlier drop, climbing to new session peaks. The initial decline was a swift reaction to recent changes in margin requirements. Starting after business hours on January 13, margin calculations for gold, silver, platinum, and palladium will shift from a fixed dollar amount to a percentage of the notional value, according to OCBC FX analysts Sim Moh Siong and Christopher Wong.

Silver Supply Constraints and Favorable Macroeconomic Factors Support Positive Outlook

The CME increased margin requirements for precious metal futures twice in the final week of December 2025, responding to heightened market volatility. Higher margin requirements often prompt traders to reduce their positions, especially when liquidity is limited. While this can temporarily pressure prices, it does not signal a fundamental change in the market’s underlying strength. Nevertheless, investors may use this period to assess whether precious metal prices can maintain their current levels.

Despite the possibility of a short-term correction, the broader market narrative remains unchanged. For gold, ongoing geopolitical tensions—highlighted by events in Venezuela, remarks from Trump regarding Greenland, and evolving situations in Iran—continue to fuel uncertainty and the risk of sudden escalations in various regions, even if individual incidents subside quickly. The combination of steady demand, supportive macroeconomic trends, and persistent geopolitical risks is expected to bolster the gold market outlook.

Continued tightness in the physical silver market, strong investor interest, and recent regulatory adjustments in China are key factors sustaining a positive view on silver. Technically, gold was recently trading near 4633.00. Daily indicators suggest a slight bullish momentum, though the RSI points to conditions approaching overbought territory, indicating a potential for a near-term pullback. Key support levels are noted at 4454 (23.6% Fibonacci retracement from October low to January high) and 4416 (21-day moving average).