Precious metals continue to hog the spotlight to start the new year

As the year starts, precious metals are gaining significant attention. Markets are not fully active until next week, but both gold and silver are experiencing notable increases. Gold has risen nearly 2% to $4,393, while silver has increased over 4% to $74.38. This rise has held during European morning trades. However, traders are remaining cautious, and some near-term resistance may be indicated. Both metals are approaching their respective 100-hour moving averages. Silver's chart looks promising due to buyers defending around the 200-hour moving average after a pullback from recent highs, whereas gold faces secondary resistance from its own 200-hour moving average. Clearing the $4,400 level would be a significant step for gold in regaining upward momentum towards recent highs above $4,500. The strong seasonal trend for gold seen in December may continue into January, traditionally the strongest month for gold over the past twenty years. However, there remains caution as prior years have shown that December strength can lead to less impressive January performances, especially after the pandemic. Overall, last month's performance saw gold gain 2.5% and over 33% since last August, while silver's gains were even more remarkable at 27% for December and an astounding 102% since August. The critical question now is whether there is more room for growth or if a significant pullback is imminent.