Gold and Silver Forecast | Breakouts Extend Bullish Momentum

What to Know

• Gold and silver remain in strong bullish trends heading into 2026
• Central bank gold buying continues to provide long-term support
• Gold is consolidating above the $4,400 breakout level
• Silver has turned parabolic after breaking above $70
• Pullbacks in both metals are viewed as potential buying opportunities

The markets have been rallying due to central banks buying of gold. Silver is also rallying right along with it in a little bit of fear when it comes to a lack of supply, as silver is heavily demanded by green technologies, and even AI has a certain amount of use for silver. There are concerns about physical silver supplies, but that’s not the first time I’ve heard that. It’s interesting that we are finally breaking out.

Longer term, gold has a bit of a boost mainly due to the fact that central banks are using it to shore up balance sheets, and of course, we have massive amounts of debt around the world that I think is going to be a central theme in 2026. Central banks are buying gold to shore up those balance sheets, and that, of course, provides a permanent bid. Both markets look bullish going into next year.

Gold

Gold initially rallied during the trading session on Tuesday but gave back the gains pretty quickly. Again, I think the giveback probably isn’t a big deal. It’s just a matter of the market had broken out above the $4,400 level, and it could drop down there to test that area for potential support. Market memory, if you will.

Either way, gold is a market that should continue to go higher over the longer term, and I think the lack of volume over the next couple of days is the actual story here. Not much has changed from a demand standpoint, and it should be noted that the triangle that we just broke out of suggests we could be going to $4,900.

Silver

The silver market is much more parabolic than gold, obviously, and it broke above the $70 level during the early part of the Tuesday session. If this kicks off a pullback, I think it will only be thought of as a buying opportunity, but let’s be honest, this is a market that is overstretched by just about any metric you can use.

That doesn’t mean that traders should be shorting the silver market; it’s just that it’s very difficult to get long here. Nonetheless, we will get the occasional pullback, and that pullback should continue to be a buying opportunity, as nothing has changed fundamentally in this market. It’s just that gravity is starting to show itself again. Major round numbers like $60 and $65 will continue to be interesting places to play on a bounce, but a little bit of patience probably goes a long way here.

 

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