Weekly Outlook: Central Bank Bombshell + Dual Data Shocks! Can Gold and Silver Break Through the Dollar's Lifeline?
Storm warning! The Federal Reserve's rate cut faces a hawkish siege, with the Bank of England, European Central Bank, and Bank of Japan ready to act. The dual shocks of Non-Farm Payrolls and CPI are about to explode, shaking the USD index’s fragile defense at 98. Gold and silver are set to launch their year-end rally supported by strong technical patterns.
From AI trading, the new Fed chair to copper, these are the 'five most important trading themes for 2026' listed by Goldman Sachs.
Goldman Sachs believes that the change in leadership at the Federal Reserve in 2026 will lead to a significant depreciation of the US dollar; the AI market is at "the end of the prologue," with growing divergence among AI beneficiaries, emphasizing that now is structurally the optimal time for long-term investment in 'innovation'; Goldman Sachs highlights the importance of diversified allocation, with copper assets being particularly attractive, forecasting that by 2030, global grid and power infrastructure will drive over 60% of copper demand growth, equivalent to adding another United States' worth of demand.
U.S. Stocks Close | Major Indices End Lower Amid Tech Selloff; Storage, Optical Communication Concepts Plunge Across the Board, SanDisk, ALAB Drop Over 14%; Tesla, Apple, Netflix Buck the Trend with Gains
Following Oracle, Broadcom also experienced a significant drop in its stock price due to its AI business, intensifying investor concerns over the high valuations across the AI sector. Reports indicated delays in some of Oracle's data center projects, further dampening market sentiment. The semiconductor index plummeted, nearly erasing all gains since December. The Nasdaq index fell by nearly 400 points in a single day. Despite the Federal Reserve's announcement of a more dovish policy than expected this week, challenges facing artificial intelligence development have led to mixed performances in the U.S. stock and bond markets. The Dow Jones Industrial Average still managed to rise over 1%, marking its third consecutive weekly gain. The cryptocurrency market vividly reflected this week's turmoil, with Bitcoin prices fluctuating sharply between $90,000 and $94,000, yet ending the week almost unchanged.
Selloff Strikes! Nasdaq Plummets 2%, Bitcoin Falls Below the 90,000 Mark – Has the 'High Volatility, Strong Divergence' Phase Begun?
Global markets experienced a sudden bout of volatility on Friday. Amid uncertainty over the Federal Reserve's policy outlook and a concentrated release of pressure from high valuations in technology stocks, U.S. equities weakened rapidly during trading, with the technology sector leading declines across major indices. The U.S. dollar rebounded after consecutive declines, while Bitcoin and crypto-related assets faced synchronized downward pressure, signaling a marked decline in risk appetite within a short timeframe as funds accelerated withdrawals from high-volatility assets.
Gold and silver prices continue to rise, with strong bullish momentum.
During the early U.S. trading session on Friday (December 12), gold prices surged significantly, reaching a seven-week high. Overnight, the COMEX (New York Mercantile Exchange) March-delivery silver futures price hit another record high at $65.085 per ounce. Both precious metals were driven by robust technical buying and benefited from the Federal Reserve's unexpectedly dovish stance as well as the weakening U.S. dollar index. The February-delivery gold futures contract (which typically trades about a dozen dollars above spot gold) increased by $65.8 during the session, reaching $4,378.80 per ounce, while the March-delivery silver futures price rose by $0.468.
Express News | Fed's Hamak: The weakening of the dollar reflects a "normal" shift among investors.