Gold (GC=F) futures pared gains on Wednesday to hover near $4,900 per ounce, while silver (SI=F) rallied for a second day in a row as investors bought the dip following last week’s crash that rattled Wall Street.
While some analysts caution that silver’s rebound remains volatile, they’re bullish that prices for bullion will move higher despite the dramatic pullback, which put a stop to precious metals’ rally.
Read more: Thinking of buying gold? Here’s what investors should watch for.
Goldman Sachs analysts reiterated a significant upside risk to their forecast for gold of $5,400 per troy ounce by the end of 2026.
“Our forecast incorporates two drivers: that central banks maintain their recent pace of accumulation and that private investors step up gold ETF purchases as the Fed cuts rates,” analyst Lina Thomas and her team said in a note on Tuesday evening.
“We do not account for potential further private sector diversification — a source of additional demand that we view as a significant upside risk to the outlook,” the analysts added.
The analysts were more guarded on silver, which saw a dramatic drop of more than 30% last Friday. Silver futures hovered near $90 per ounce on Wednesday, soaring 8% for a second day in a row.
“In silver, we continue to advise volatility-averse clients to remain cautious,” wrote Goldman’s Thomas, citing a shortage of readily available silver in the London market that is amplifying price volatility.
Earlier this week, JPMorgan analysts also doubled down on gold, forecasting enough demand from central banks and investors this year to ultimately push prices to $6,300 per ounce by the end of 2026.
“Even with the recent near-term volatility, we believe longer-term rally momentum will remain intact,” the analysts said in a note on Sunday.
JPMorgan analysts forecast a floor of around $75-80 per ounce on silver this year, with the precious metal “unlikely to fully relinquish its recent gains.”
Wednesday’s rally in gold and silver futures came as the US dollar resumed its slide. A weaker greenback tends to lift commodity prices by making dollar-denominated assets cheaper for overseas buyers.
Year to date, bullion is up roughly 14% while silver is up about 16%.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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