Looking at recent market trends, gold and silver are soaring, US stocks are falling, and the crypto market is also declining. What exactly is happening behind the scenes?

Ultimately, it is the triple divergence of macro expectations, risk appetite, and asset attributes that is at play. Simply put: funds are withdrawing heavily from high-risk assets (US stocks, cryptocurrencies) and flowing into traditional safe-haven assets (gold, silver).

**Why are gold and silver rising so sharply?**

First, the Federal Reserve's signals of rate cuts are clear. The real yield on 10-year US Treasury bonds is declining, directly reducing the opportunity cost of holding interest-free precious metals. In simple terms, putting money into gold, although it yields no interest, has become more cost-effective by comparison. Meanwhile, the US dollar index is under pressure, which means that buying gold and silver with dollars pushes prices higher.

Second, risk signals are everywhere. US-EU tariff battles, instability in the Middle East, turbulence in South America, and discussions about the Federal Reserve's independence—all these factors lead investors to flock to traditional safe-haven assets. Especially since central banks around the world are continuing to buy gold, reaching near-year highs in 2025, which has established a strong bottom for gold prices.

Silver has its own additional story. The explosive growth in demand for photovoltaics and new energy over the past two years requires silver. However, the supply of mined silver cannot keep up with demand, leading to several years of supply shortages, which further amplifies silver's price increase.

**What are US stocks and the crypto market doing?**

The problem with US stocks is that, in a high-interest-rate environment, corporate profit pressures are high, and valuations are suppressed. Growth stocks, in particular, are very sensitive to interest rate risks. Plus, capital is flowing out, into precious metals and US Treasuries, amid geopolitical tensions and tariff policy uncertainties, causing the stock market to keep retreating.

The crypto market is hit even harder. Mainstream investors still view cryptocurrencies as high-volatility risk assets rather than "digital gold." In an environment where overall risk appetite plummets and liquidity tightens, funds are among the first to be pulled out of the crypto space. Many leveraged positions are being liquidated, and declines often surpass those of US stocks.

**What is happening with capital rebalancing?**

At the end of the year and the beginning of the new year, liquidity is already tight, and price volatility is amplified. Institutional investors, facing redemption pressures or margin requirements, start reducing holdings of high-risk assets and increasing their positions in precious metals. This creates a "negative feedback loop": the more they reduce, the more risk assets fall, which further encourages selling, ultimately leading to a seesaw effect between safe-haven assets and risk assets.

Ultimately, this is the market voting with its feet, telling us how uncertain the current environment really is.