"Gold and silver are poised to print fresh all-time highs. With strong fundamentals and technical momentum intact, both metals look set for further gains over the coming months. The Federal Reserve policy will be under the microscope in 2026. Markets are currently pricing in a lowly 16% chance of a quarter-point cut at the January 28th meeting, while the March 18th meeting is pricing in a more bullish 41.4% probability of a 25-basis-point cut. Markets are currently predicting three quarter-point cuts in 2026."
"Global central banks continue their relentless buying of gold reserves as institutions continue to diversify away from the US dollar. This trend shows no signs of abating anytime soon. Silver faces a particularly compelling fundamental case for higher prices. The physical market is experiencing unprecedented tightness in available supply as industrial demand continues to surge, driven by green energy applications. The physical silver shortage intensifies as paper markets disconnect further."
"The premium currently being paid for physical silver over spot, paper prices, continues to widen, with physical prices rumoured to be $3-$10/oz more than paper prices. This signals genuine tightness in the deliverable supply of metal. Price discovery continues as scarcity becomes apparent. Investment demand compounds this supply squeeze as retail buyers compete. This supply/demand imbalance will continue to push silver prices higher."
Gold and silver are positioned to record new all-time highs as strong fundamentals and technical momentum support further gains. Markets price a low 16% chance of a January 28th Fed cut and about 41.4% chance for March, with expectations of three quarter-point cuts in 2026. President Trump’s Fed chair choice could favor lower rates if inflation remains subdued or the job market weakens. Global central banks are steadily increasing gold reserves to diversify away from the US dollar. Silver faces acute physical tightness as industrial demand from green energy surges, premiums over paper widen, and investment demand intensifies.
Read at London Business News | Londonlovesbusiness.com
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