#BinanceABCs Silver hits a historic high, can gold remain calm? This week's economic data and central bank actions will determine everything.

Silver just reached a new all-time high, and gold is likely to benefit as well. But how long the rally will last and whether there will be a pullback ultimately depend on the key economic data and central bank policies this week. Separating short-term positive signals from long-term risks is essential to see the way forward clearly.

Short-term buying surges, precious metals soar together

1. If inflation data exceeds expectations, gold will get a boost
This week, the US, Eurozone, and Japan released November CPI data. If inflation doesn't cool down as the market expects and instead exceeds forecasts, the inflation-hedging halo of precious metals will shine brighter. Silver has already started climbing, and as a safe-haven asset, gold will see influxes of capital, surging upward along with silver.

2. Weak employment data ignites rate cut expectations
The US November unemployment rate and non-farm payrolls are the key indicators for understanding the Federal Reserve's next move. If these employment figures are not strong enough, the market will be more confident that the Fed will cut rates in 2025. US Treasury yields and the dollar index will decline accordingly, directly pushing up gold prices. Additionally, hot money attracted by silver's new high will accelerate gold's upward momentum.

3. Central banks signal easing, ample liquidity is a positive
Comments from Federal Reserve officials Williams and Bostic, along with rate decisions from the European Central Bank and Bank of Japan, will reveal easing signals. Once these are hinted at, the dollar's appeal will weaken. The market will anticipate abundant liquidity, boosting demand for non-dollar assets like gold, and the synchronized rise with silver will gain more momentum.