Commodities Focus: Gold Pulls Back & Silver targets Retail Traders

LONDON — The precious metals bull run hit a speed bump on Tuesday. After briefly touching an all-time high of $4,634/oz, Spot Gold (XAU/USD) reversed sharply to trade below $4,600.

The catalyst for the reversal was a “sell the news” reaction to the US CPI data. While inflation is cooling, it wasn't enough to cement immediate rate cuts, allowing the US Dollar and Treasury yields to rebound. The inverse correlation remains the dominant driver: a stronger Greenback makes bullion more expensive for foreign buyers.

Strategy: Is the Top In?

Despite the pullback, structural support remains firm. Geopolitical instability (Iran, Venezuela) and central bank buying continue to put a floor under prices. Analysts at Citi maintain a bullish long-term target of $5,000 for Gold, citing the weaponization of the USD and debt sustainability concerns as key drivers.

New Silver Contract for Retail

In a move to capitalize on the retail trading frenzy, the CME Group announced the launch of a new 100-ounce Silver futures contract (launching Feb 9, 2026).

• The Logic: Traditional 5,000oz contracts are too large for many retail traders. The new “mini” contract reduces capital requirements, allowing smaller players to speculate on Silver's volatility.
• Market Impact: This could inject significant liquidity—and volatility—into the Silver market, which has historically been prone to dramatic short-squeezes.

With the Gold/Silver ratio currently favoring the white metal, traders are watching $100/oz as the next psychological milestone for Silver in this commodities super-cycle.