USD weakens as gold surges 2% and silver jumps 4% on safe-haven demand

Gold has surged nearly 2% to $4,393 while silver rallied over 4% to $74.38, pressuring the US dollar across major pairs as precious metals continue their December momentum into the new year. The dollar index (DXY) is showing weakness as traders rotate into commodities, with EUR/USD gaining 0.15% and GBP/USD advancing 0.2% in early trading. US futures are trading higher, suggesting risk-on sentiment, though the simultaneous precious metals rally indicates underlying concerns about dollar debasement and inflation. The sustained commodity rally since December reflects growing market expectations of continued monetary accommodation and potential fiscal stimulus in 2026. Technical indicators show gold breaking above the $4,350 resistance level, opening the path toward $4,450, while silver's breakout above $72 targets the $76-78 zone. For forex traders, continued precious metals strength could maintain downward pressure on the dollar, particularly against commodity currencies like AUD and CAD.