Quick overview

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Silver has more than doubled, and gold has increased by more than 60% this year, putting both metals on track for their best yearly results since 1979. Increased central bank purchases and investors’ withdrawal from sovereign bonds and currencies have supported the scorching rallies.

 

Gold’s momentum is set to carry into 2026 as solid central banks demand and renewed ETF inflows, coupled with easier policy and persistent geopolitical tension, keep the macro backdrop firmly supportive.

The Fed leaving a wide runway for surprises in its latest outlook” means that volatile markets are likely this year. The World Gold Council reports that holdings in gold-backed exchange-traded funds have increased each month this year, except for May. Tightness and disruptions in major trading hubs, along with a surge in demand, have supported silver in recent weeks.

The possibility of additional monetary easing in the US after a rate cut helped gold stabilize after three days of gains. Silver was approaching a record high. After rising 1.2 percent on Thursday, bullion was trading at about $4,270 per ounce. Following the reduction in borrowing costs on Wednesday, Federal Reserve policymakers left the door open for more interest rate cuts next year. Although the US central bank only indicated one reduction in 2026, swap traders are betting on two. Since they don’t pay interest, precious metals like gold and silver benefit from lower interest rates. The Fed will start purchasing $40 billion in Treasury bills each month to replenish the financial system’s reserves and further support bullion.