Gold and Silver Price Forecast: Demand Surges and Market Trends
Published: February 23, 2026
Author: Arslan Ali
Market Overview
Gold and silver prices have seen a significant uptick, buoyed by a three-week rally as investors adjust their portfolios amidst rising trade tensions and a weakening US dollar. Gold futures have increased by approximately 1-2% in a single day, marking three consecutive weeks of gains. This surge is accompanied by a notable rise in trading volumes in global derivatives, indicating renewed interest from institutional investors.
Central Banks Driving Demand
Central banks have played a crucial role in supporting gold prices, purchasing over 1,000 metric tonnes in 2025, marking one of the strongest multi-year buying trends on record. Reserve managers in emerging markets are diversifying their portfolios away from the dollar due to economic uncertainties and fiscal deficits. Additionally, gold ETFs have started to see inflows at the beginning of 2026, reversing a trend of outflows from the previous year.
Silver's Dual Support
Silver has mirrored gold's performance but benefits from additional support due to its industrial applications. The Silver Institute projects global demand for silver to exceed 1.2 billion ounces this year, driven by renewable energy installations and electronics. However, new mine supply remains constrained, with few new mines coming online, further supporting silver prices in a volatile market.
Technical Analysis
Gold (XAU/USD)
Gold is currently trading around $5,155, having reclaimed the 0.618 Fibonacci retracement level at $5,141. This breakout follows a series of higher lows along an upward trendline that began at $4,402. The short-term momentum appears positive, with gold breaking above the 50-period moving average at $4,999 and the 200-period MA at $4,859. The immediate support zone is between $5,141 and $5,155, with bullish targets set at $5,303 and $5,448.
Trade Idea: Consider buying above $5,150 with a target of $5,303, while setting a stop-loss at $5,000.
Silver (XAG/USD)
Silver is trading at approximately $86.87, having broken through a descending trendline that had capped prices since late January. This movement is supported by a series of higher lows from a base at $72.28. Silver has also surpassed both the 50-period moving average at $84.83 and the 200-period MA at $84.50, indicating bullish sentiment. The previous resistance zone of $84.80–$86.00 is now acting as support, with immediate targets at $92.14 and $98.08.
Trade Idea: Look to buy on a pullback to around $85.00, targeting $92.00, with a stop-loss below $79.90.
Conclusion
The outlook for gold and silver remains positive, driven by strong demand from central banks and industrial applications, respectively. As market conditions evolve, these precious metals are positioned as attractive investment options amidst economic uncertainty.