Gold and Silver Price Forecast for 2026

As we enter 2026, gold and silver prices have shown signs of softening towards the end of 2025, primarily due to thin liquidity and uncertainty surrounding the Federal Reserve's monetary policy. Despite this, the strong performance of these precious metals throughout 2025, driven by geopolitical tensions and increased demand for safe-haven assets, suggests potential for further upside in the new year.

Market Overview

Gold (XAU) and silver (XAG) experienced a decline on the last trading day of 2025, with gold trading around $4,320. This drop was influenced by mixed signals from the Federal Open Market Committee (FOMC) minutes, where some members advocated for a pause in rate hikes while others indicated readiness for further cuts if inflation trends downward. The uncertainty surrounding these decisions contributed to the price fluctuations.

Factors Influencing Gold Prices

Throughout 2025, gold prices surged due to several factors, including:

• The introduction of a sweeping global tariff policy by U.S. President Donald Trump, which heightened demand for safe-haven assets.
• Record purchases by central banks and a significant increase in demand for gold-backed exchange-traded funds (ETFs).

Despite the recent price drop, the overall market sentiment remains constructive, with ongoing geopolitical risks providing underlying support for gold prices. The situation in Ukraine remains tense, and instability in the Middle East, particularly with Iran's declaration of war and Saudi airstrikes in Yemen, continues to bolster demand for gold.

Technical Analysis

Gold Technical Analysis

The daily chart for gold indicates that prices have reached a support level within an ascending broadening wedge pattern. A break below $4,200 could signal further declines towards the $4,000 mark. Conversely, maintaining support above $4,300 and breaking above $4,400 could lead to upward momentum towards the $4,600 region. As long as prices remain above $4,000, a bullish trend is expected to continue into 2026.

Silver Technical Analysis

For silver, the daily chart shows that prices reached a significant resistance level at $84 on December 29, 2025, before retreating. Currently, silver is testing support around $70. A break below this level could lead to further declines towards the $60 to $65 range. However, if support holds, silver could potentially rise towards the $100 mark in 2026.

US Dollar Technical Analysis

The US Dollar Index (DXY) is trading below both the 50-day and 200-day simple moving averages (SMAs), indicating bearish sentiment. The convergence of these moving averages suggests a potential price move is imminent. A break below 96.50 could trigger further downside, while a recovery above 99 would indicate potential for upward movement towards 100.50.

Conclusion

As we look ahead to 2026, the outlook for gold and silver remains cautiously optimistic. The combination of strong technical support, ongoing geopolitical tensions, and the potential for further monetary policy adjustments by the Federal Reserve could create favorable conditions for precious metals. Investors should closely monitor these developments as they navigate the market in the coming year.