Gold futures (GC=F) were trading close to $5,000 on Wednesday, while silver futures (SI=F) also saw a second consecutive day of gains following last week’s market turmoil. Investors seized the opportunity to buy the dip after a sharp crash that shook Wall Street.
Although some analysts warn of continued volatility in silver’s rebound, they remain optimistic about the overall trajectory of precious metals. Goldman Sachs analysts, for example, reaffirmed their bullish outlook on gold, with a forecast of $5,400 per troy ounce by the end of 2026.
The analysts at Goldman Sachs pointed to two key factors driving their forecast: continued accumulation by central banks and increased purchases of gold ETFs by private investors amid expected rate cuts by the Federal Reserve. They also highlighted the potential for additional demand from the private sector, which could further boost prices.
In contrast, Goldman’s analysts were more cautious about silver, which experienced a drastic 30% crash last Friday. Despite a recent uptick to around $90 per ounce on Wednesday, silver’s volatility remains a concern. The analysts noted a shortage of available silver in the London market, contributing to price fluctuations.
JPMorgan analysts also weighed in on the precious metals market, doubling down on gold and predicting a rise to $6,300 per ounce by the end of 2026. They emphasized the resilience of gold’s long-term rally momentum, despite recent fluctuations. For silver, JPMorgan forecast a price floor of $75-80 per ounce for the year, with the metal likely to hold onto its recent gains.
The rally in gold and silver futures on Wednesday coincided with a decline in the US dollar, which typically boosts commodity prices by making dollar-denominated assets more affordable for international buyers. Year-to-date, gold has seen a 14% increase in value, while silver has risen by approximately 16%.
Ines Ferre, a senior business reporter for Yahoo Finance, provides insightful coverage of these market trends. Follow her on Twitter at @ines_ferre for the latest updates.
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