Gold, silver prices prediction – After a breathtaking rally that pushed gold to a record high, the precious metals market experienced a significant shake-up this week. Investors witnessed one of the most dramatic single-day declines in over a decade, prompting questions about the future trajectory of both gold and silver.
A Week of Sharp Reversals
The rollercoaster ride began with Comex gold futures soaring to an all-time peak of $4,398 per ounce. However, the celebration was short-lived. By Tuesday, prices tumbled by a staggering 6.11%, or $266.40, marking its most severe one-day drop in over ten years. For the week, gold futures settled down 1.8%.
Silver, known for its higher volatility, mirrored this weakness but with even greater force. After hitting a record high of $53.76 per ounce on October 17, the “white metal” plunged by over 8% in a single day to $47.12, its steepest fall since 2021.
What Triggered the Sudden Sell-Off?
Market analysts attribute the sharp correction primarily to technical factors and profit-taking.
According to Riya Singh, Research Analyst at Emkay Global Financial Services, the sell-off was “largely technical, with prices failing to hold above the $4,300 an ounce level.” After a prolonged, record-setting rally, investors seized the opportunity to lock in profits. This was exacerbated by a firmer US dollar and renewed optimism around US-China trade discussions, which temporarily reduced the appeal of safe-haven assets like gold.
Singh explained that the reversal was also due to “months of speculative positioning tied to expectations of deeper rate cuts by the Fed.” As those expectations were tempered, some speculative money flowed out of the market.
The Road Ahead: Consolidation with a Bullish Undertone
Despite the steep correction, the broader outlook for precious metals remains constructive. In the short term, prices are expected to stay volatile but largely range-bound as the market enters a phase of consolidation.
All eyes are on key events that will provide direction, including:
The US Federal Reserve’s policy decision and subsequent remarks from Chair Jerome Powell.
The European Central Bank’s policy review.
Geopolitical developments, including high-level international meetings.
Singh emphasizes that the long-term bullish case for gold remains intact. Macro drivers such as “persistent US deficits, central bank diversification away from the dollar, and elevated geopolitical risk” continue to provide a solid foundation for prices.
For silver, the fundamental picture is also robust, heavily supported by rising industrial demand from the solar photovoltaic and electric vehicle sectors. Singh expects that if investment flows and industrial demand remain resilient, silver could advance towards $60 an ounce in the next 8-12 months.
Fact Check & Key Takeaways:
Fact Check: The figures cited for gold and silver’s record highs and subsequent percentage declines are accurate based on the source material and align with market data from the referenced dates.
Short-Term Outlook: Expect volatility and consolidation as the market digests central bank cues and geopolitical news.
Long-Term Outlook: Analysts remain broadly bullish due to structural factors like central bank buying, geopolitical uncertainty, and strong industrial demand for silver. This recent pullback is viewed by many as a healthy correction within a longer-term upward trend.