Christmas market did not arrive as expected, but precious metals unexpectedly became the main focus.

In recent weeks, the spot gold price broke through $4,500 per ounce, and silver, with an even more aggressive rally, first surpassed $75 per ounce, with an astonishing year-to-date increase approaching 160%. This super rally in precious metals has spread from traditional markets, igniting enthusiasm in the crypto ecosystem.

The popularity of on-chain precious metal trading is visibly increasing. This year, the pace of bringing commodities onto the blockchain has significantly accelerated, with the total market cap of tokenized gold and silver approaching $4 billion. Many Perp DEXs have begun to list precious metal trading pairs. Taking the leading protocol Ostium as an example, its cumulative trading volume has exceeded $30 billion, with the trading share of commodity perpetual contracts reaching as high as 40%—a figure that clearly indicates the strong underlying market demand.

**Triple Factors Resonance, Giving the Bullish Market in Precious Metals "Confidence"**

Behind this epic rally, it is not driven by a single factor. The true driving forces come from the triangular resonance of monetary policy, US dollar credit, and geopolitical risks.

Looking at the Federal Reserve's recent moves, there has been a clear shift in policy stance in the second half of this year—abandoning the previous "higher, longer" tightening approach. To hedge against recession risks, the Fed has completed three consecutive rate cuts. This shift has directly weakened the attractiveness of the US dollar, and traditional safe-haven assets like gold and silver have gained purchasing power accordingly. Meanwhile, global geopolitical tensions remain high, and demand for safe-haven assets continues to stay elevated. This macro premium, combined with other factors, is what we are seeing as the surge in precious metals.

The reason the crypto market is actively embracing this rally is fundamentally because on-chain perpetual contracts provide leverage and efficiency for precious metal investors. Compared to the complex processes of traditional precious metal trading, tokenized precious metals traded via DEXs are simple and efficient. This new form has quickly gained market recognition.