Analysts remain optimistic about the long-term prospects for gold and silver, despite recent price volatility.
Major financial institutions have raised their forecasts, with OCBC projecting gold at US$4,600 per ounce and silver at US$56 per ounce over the next 12 months. Maybank predicts gold could reach US$4,800 per ounce by the end of next year, while HSBC previously forecast gold hitting US$5,000 per ounce in 2026 before the recent consolidation.
As of Monday morning, gold traded at US$4,076 per ounce and silver at US$48.21 per ounce, down from recent highs of over US$4,300 and US$54 per ounce, respectively.
Manpreet Gill, chief investment officer at Standard Chartered, expects gold prices to rise gradually with heightened short-term volatility, while silver may face resistance near the US$50 mark and pressure from weaker U.S. economic data. He added that gold remains overweight in multi-asset portfolios due to its long-term potential.
Analysts attribute the recent gold rally to central bank purchases, geopolitical tensions, inflation concerns, and loss of confidence in fiat currencies. Since 2022, emerging market central banks have increased gold reserves to diversify from the U.S. dollar and mitigate risk following Western sanctions on Russia. Private investors have also fueled demand through gold exchange-traded funds.
Silver benefits from strong industrial demand, particularly for solar panels and electric vehicles, amid constrained supply. Analysts note that improving industrial demand and higher gold prices support silver’s outlook.
Several experts see the recent pullback as a buying opportunity. Craig Bell of Eastspring Investments called it a “viable entry point” for gold, while Maybank’s Eddy Loh highlighted robust medium-term demand from central bank reserve diversification. Analysts recommend allocating 5–7% of diversified portfolios to gold, gradually averaging in positions over time.
Silver, however, requires a more cautious approach due to higher near-term volatility and dependence on industrial demand. Gill warned against treating silver merely as a “gold catch-up” trade, noting it is highly sensitive to economic downturns.
Potential risks for gold include changes in Federal Reserve policy or easing geopolitical tensions, which could trigger short-term corrections. OCBC’s Vasu Menon cautioned that, despite strong long-term prospects, both metals remain susceptible to intermittent and sometimes sharp pullbacks.
