Gold (XAUUSD) & Silver Price Forecast: Metals Stabilize After Record 6%–8% Selloff

Market Overview

Gold and silver faced their steepest single-day declines in years, bringing an abrupt pause to a months-long rally driven by inflation concerns and central bank buying. Spot gold slid more than 6%, marking its largest intraday fall since 2013, while silver plunged over 8%, its worst performance since 2021.

The pullback followed a stronger US dollar and easing trade tensions between Washington and Beijing, prompting traders to unwind safe-haven positions.

“Gold had several attempts to break higher last week, but resistance near the upper range held firm,” said David Morrison, senior market analyst at Trade Nation. “This correction may represent a healthy reset after an overextended run.”

Central Banks Still Accumulating Gold

Despite the short-term setback, demand from institutional investors and central banks remains robust. According to the World Gold Council, global central banks purchased nearly 1,100 metric tons of gold in the first three quarters of the year, one of the highest totals on record.

Exchange-traded funds have also seen consistent inflows, reflecting investor appetite for diversification amid fiscal uncertainty.

Analysts note that macroeconomic fundamentals continue to favor the yellow metal. “You still have elevated inflation, low real yields, and geopolitical risk—all supportive factors for gold,” said Tom Essaye, founder of Sevens Report Research.

Wall Street Maintains Bullish Long-Term Outlook

Major banks remain optimistic on gold’s trajectory. Goldman Sachs forecasts gold reaching $4,900 per ounce by the end of next year, while Bank of America maintains a long position with a $6,000 per ounce target by mid-2026. JPMorgan projects similar highs by 2029, citing persistent global debt and currency debasement concerns.

Silver, meanwhile, continues to benefit from strong industrial demand, particularly from the solar energy and electronics sectors, providing a partial cushion against market volatility.

While short-term volatility may persist, analysts say both metals remain underpinned by macroeconomic uncertainty and investor hedging. As Michele Schneider of MarketGauge.com observed, “What would truly end gold’s run is a world of fiscal discipline and peace—neither of which seems imminent.”

Short-Term Forecast

Gold is trading near $4,130, attempting to recover after a sharp fall, while silver hovers around $48.97, stabilizing above key support. Both metals show signs of consolidation before a potential rebound.

Gold Prices Forecast: Technical Analysis

Gold is trading around $4,130, attempting to stabilize after a steep decline from last week’s highs. The price recently dipped below the 50-EMA ($4,178), signaling weakening short-term momentum, while the 200-EMA ($3,907) remains a key support zone. A rebound above $4,185 could trigger a move toward $4,220–$4,280, but failure to hold this level may expose $4,060 and $3,980 as the next downside targets.

The RSI at 40 suggests gold is approaching oversold territory, hinting at possible consolidation or a mild technical rebound.

Overall, traders are watching for a decisive move above $4,185 to confirm a short-term recovery within the broader uptrend.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading around $48.97, showing early signs of recovery after finding support near the 200-EMA ($47.04). The price rebounded following a sharp pullback from last week’s highs, with short-term resistance now seen around $50.45. A close above this level could open the path toward $52.81, signaling renewed bullish momentum.

The RSI at 36 indicates the metal is emerging from oversold conditions, suggesting buyers are gradually regaining control. However, failure to stay above $47.50 could lead to another retest of $45.85.

Overall, silver appears to be stabilizing after a steep correction, with traders eyeing confirmation above $50 for a potential continuation higher.