Analysts Unfazed by Gold, Silver Price Drops

The unexpectedly sharp drop in silver and gold prices on Friday may have alarmed investors, but analysts say they aren’t panicking just yet.

The two metals were trading around $4,700 and $82 an ounce, respectively, on Monday.

Some see the chances of a continued rally in both metals despite what they view as a temporary pullback. Silver futures were rising Monday, while gold was flat after volatile early trading, Janet H. Cho reported for Barron’s Daily.

The selloff began after President Trump said his nominee for Federal Reserve chair would be Kevin Warsh, a former central bank governor.

Selling accelerated after CME Group raised its maintenance margin requirements for certain precious metals, Yardeni analysts noted, forcing some liquidations.

JPMorgan analysts led by Gregory C. Shearer expect the gold rally to continue, saying demand from central banks and investors will push prices to $6,300 an ounce by the end of 2026.

They see a higher floor of around $75 to $80 an ounce for silver.

The two metals were trading around $4,700 and $82 an ounce, respectively, on Monday.

Yardeni analysts wrote that Warsh’s nomination — along with Friday’s hotter-than-expected producer price index reading — should have been bullish for precious metals.

Warsh favors stimulating growth with lower interest rates, they noted, and does not believe the Fed needs to worry about inflation right now.

JPMorgan analysts added that silver’s higher prices will have longer-term fundamental consequences for supply and demand, working to erode the deficit that has been the main driver of silver’s explosive catch-up with gold.