Noise, Myths And Mechanics In The Silver Market

Noise, Myths And Mechanics In The Silver Market

Gold: Goldman Sachs Predicts Major Upside Through 2026

Goldman Sachs predicts a significant upside for gold, projecting prices to reach $4,900/oz by December 2026, driven by central bank demand. The bank also recommends a "long copper / short aluminum" trade due to supply-demand dynamics. Gold's resilience is highlighted by its recovery above the 100-hour moving average, with targets set at $4,500 and $5,000. Meanwhile, aluminum faces a bearish outlook with a 20% drop expected by 2026. The analysis underscores a preference for gold and copper as strategic reserves and infrastructure essentials.

Spot platinum rose over 3% to $1,958 per ounce

Silver’s Ascent: AI and Data Centers Drive Critical Metal to Record Highs

Michael Steinmann, CEO of Pan American Silver, discussed the rising demand for silver driven by AI and data centers in a CNBC interview. He highlighted silver's critical role in modern technology, especially in electronics and renewable energy. Steinmann noted a structural deficit in silver supply, with 75% of production as a byproduct of other metals. This supply-demand mismatch is causing record high prices and underscores silver's growing strategic importance.

Central Banks Provide Gold Tailwinds, Silver Gains Traction, Platinum Pauses

Central banks continue to support the gold market, adding a net 20 tons of gold in May 2025, with a bullish sentiment expected to persist. Silver is gaining traction with significant inflows into ETFs, stabilizing above $36 per ounce. Meanwhile, platinum may be pausing after a recent rally, with potential consolidation in the industry. Mergers and acquisitions are active, including Equinox Gold's $1.8 billion acquisition of Calibre Mining. The gold-to-silver ratio suggests silver has room to appreciate, while the abrdn Physical Precious Metals ETF GLTR is up 26.19% year-to-date.