Just how far will the gold and silver rally go before prices cool off? It’s the question at the forefront for analysts, following a year of breakout performance for both metals and a bullish outlook that extends into 2026.

On Monday, silver fell about 10%, its steepest one-day drop since 2021, to around $70 per ounce. Gold also slid to its lowest level since Dec. 17, posting its largest daily percentage decline since Oct. 21.

Last Friday, gold hit a record high above $4,500 per ounce. Silver traded above $83 per ounce on Monday before retreating later in the session. Both metals rebounded on Tuesday, trading at $74.58 and $4,371 per ounce respectively by late morning. Gold is set to end the year up more than 66%, while silver has gained over 158%, according to Trading Economics data.

Factors supporting gold prices include anticipated U.S. interest rate cuts, geopolitical tensions and strong central bank demand. However, gold has lagged silver’s gains. Silver has benefited from strong buying in China, tight global inventories, supply constraints and rising industrial demand.

Market participants expect current trends to persist into 2026, with sustained demand for gold and silver as safe-haven assets. Further interest rate cuts from the U.S. Federal Reserve are expected, making non-yielding gold more attractive. Gold could climb to $5,000 per ounce, while silver may reach $90 per ounce.

Emiliano Tossou