Analysts warn that precious metal prices are on the verge of a correction, with the risk of a pullback accumulating.

[Analysts Warn: Precious Metal Prices Are on the Edge of a Cliff, Correction Risk is Accumulating] According to Mars Finance, on December 28th, as precious metal prices, including silver, continued to surge, some analysts warned that precious metal prices are on the edge of a cliff, and the risk of a correction is accumulating. Capital Economics analysts wrote in a report, "Precious metal prices have risen to levels we believe are difficult to explain with fundamentals." They predict that as the frenzy for gold subsides, silver prices may fall back to around $42 by the end of next year. UBS warned that the current rapid rise in precious metal prices is largely due to insufficient market liquidity—meaning a rapid decline is very likely. UBS emphasized that short-term risks in precious metal trading have increased significantly, and given that gold prices have reached new highs, the risk of short-term investors taking profits is also substantial. The thin liquidity at the end of the year "may exacerbate price volatility," making short-term trends more difficult to interpret. Wang Yanqing, chief precious metals analyst at CITIC Securities Futures, stated that from a fundamental perspective, the factors influencing precious and non-ferrous metals have not changed significantly in the short term. Although there are long-term bullish factors such as "de-dollarization," the rapid short-term rise has clearly over-traded these long-term bullish factors, leading to heightened speculative sentiment and posing potential risks to the stable operation of the market. (Jinshi)