Silver hits a record high! What will happen to gold next? This week's key data and events will determine the outcome.

Silver prices have refreshed historical highs, and the short-term trend for gold is likely to follow silver's lead. However, whether there will be a long-term correction depends entirely on this week's core economic data and the implementation of central bank policies, and whether market expectations will change. Let's clarify the calculations from both the short-term benefits and long-term risks perspectives:

1. Short-term bullish: Precious metals are in high demand, and gold will take off with silver.

1. Inflation data exceeds expectations = The "stimulant" for gold.

This week, the CPI data for November from the United States, Eurozone, and Japan will be released. If inflation is higher than anticipated, the anti-inflation properties of precious metals will be fully realized. Silver has already opened up the upward space, and as a safe-haven asset, gold will definitely become a hot commodity for investors, soaring together with silver.

2. Weak employment data = The "igniter" for rate cut expectations.

The unemployment rate and non-farm data for November in the United States are key to observing the Federal Reserve's next moves. If employment data is weak, the market will be more convinced that the Federal Reserve will cut rates in 2025, and U.S. Treasury yields and the dollar index are likely to fall, which would directly push up gold prices. Coupled with the momentum generated by silver's new highs, funds will flock to buy gold, accelerating the growth rate.

3. Central banks signal easing = The "gas station" for liquidity.

The speeches of Federal Reserve officials Williams and Bostic, along with the interest rate decisions from the European Central Bank and the Bank of Japan, will reveal easing signals; if so, the attractiveness of the dollar will decline, and the market will feel that money is becoming more abundant. As a non-dollar asset, gold will be more appealing, and the correlation with silver's upward trend will strengthen, benefiting both brothers. $BTC #BinanceABCs