Gold and Silver Futures Slide, Signaling the Start of a Bubble Bust

On evaluating the comparative moves by the , and spot gold/silver ratio, I anticipate that despite testing the record highs on Thursday, both the precious metals have started to fall, and could continue as the precious metal bubble seems ready to bust today.

Gold futures, after testing the day’s high at $5,625.16, and a low at $5,473, currently trading at $5,535 while the silver futures, after testing the day’s high at $121.755, and day’s low at $115.308, are trading at $118.845 – showing the same pattern which looks like an advent of the bubble bust going to start today.
On the other hand, a sign of reversal is evident in the spot gold/silver ratio (XAU/XAG) in today’s session – after testing the day’s low at 45.42, and day’s high at 47.45, currently at 46.23, and is likely to reach once again above the day’s high shortly.

As I have already explained the inverse correlation between the gold, silver futures and XAU/XAG – might experience a strong reversal this week which is likely to indicate exhaustion in gold and silver futures till this weekly closing as US-Iran tension is likely to decline as the U.S. President Donald Trump is weighing options against Iran that include targeted strike on security forces and leaders to inspire protesters while the Israeli and Arab officials said air power alone would not topple the rulers.

Though the ETF inflows have supported this rally in gold and silver, along with grim relations between the U.S. and Iran, despite the rate hold by the Federal Reserve on Wednesday.

Undoubtedly gold and silver futures could fell from these highs as traders have started to book profit from the tested highs within a short span of 26 days in January, 2026 as the invested money could shift from precious metals to higher yields in Japan and the possible unravelling of the carry trade have suddenly threatened to stuck liquidity out of risky assets like gold due to elevated prices.

I find that President Trump could shift from using direct attack to creating conditions for a “regime change” after a crackdown crushed a nationwide protest movement earlier this month, as a direct attack through air strike could not only destroy the targeted sites but also result in death of hundreds of innocent people.

Undoubtedly, by this weekend, some calm down on US-Iran tension, which could get some confirmation on weekends as U.S. President Donald Trump announces such surprises, comes out on his social media account on weekends.

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Disclaimer: Readers are advised to take any position in gold and silver futures at their own risk, as this analysis is based only on observations.