--- title: "AI Demand Becomes New Support; Analysts: Silver May Continue to Outperform Gold" type: "News" locale: "en" url: "https://longbridge.com/en/news/293579799.md" description: "HSBC, JPMorgan Chase, and Bank of America issued warnings—gold remains over a thousand dollars away from its historical highs, the shadow of the \"Death Cross\" lingers, and silver is expected to outperform gold due to its industrial attributes, but UBS Group AG has lowered its ideal buying point to $48–$50. Mining executives strongly support the view that the \"bull market is intact,\" while divergence between bulls and bears is intensifying" datetime: "2026-07-23T08:10:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293579799.md) - [en](https://longbridge.com/en/news/293579799.md) - [zh-HK](https://longbridge.com/zh-HK/news/293579799.md) --- # AI Demand Becomes New Support; Analysts: Silver May Continue to Outperform Gold The precious metals market has seen a technical rebound in recent days, **but most analysts believe this rally is unlikely to sustain,** and gold's path back to historical highs remains rugged. Meanwhile, silver has gained additional support from its industrial attributes, with some institutions expecting its performance to continue surpassing that of gold. This week, spot silver rose more than 6% from last weekend, trading at $58.89 per ounce, while spot gold hit a high of $4,119.04 per ounce. ING commodity strategists Warren Patterson and Ewa Manthey attributed this rally in their Wednesday report to "bottom-fishing behavior following recent weakness," rather than "a substantive shift in the geopolitical or macroeconomic backdrop." **Both precious metals are currently far below the historical highs set in late January this year**—spot gold touched $5,589.38 per ounce at the time, while silver reached $121.67 per ounce. A stronger U.S. dollar, elevated interest rates, and market structure changes driven by rising oil prices due to the Iran war have collectively suppressed upward momentum in precious metals. ## Doubts Surround Gold's Rebound; Pressure on Both Technical and Fundamental Fronts The latest research reports from HSBC HOLDINGS and JPMorgan Chase point to the same conclusion: this rise looks more like a technical repair after being oversold rather than a trend reversal, with limited upside potential. According to HSBC's analysis, this round of gold price increases lacked clear fundamental drivers throughout. U.S. private sector employment data (ADP) fell for the fourth consecutive week to a net addition of 16,500 jobs, but the boosting effect of this weak signal on gold prices is difficult to quantify. HSBC believes **that the market has largely priced in expectations of tighter monetary policy, and gold prices are expected to continue rising gradually, but geopolitical risks—especially escalating tensions in the Middle East and further rises in oil prices—remain the biggest threat.** JPMorgan Chase technical strategist Jason Hunter issued a warning from a technical perspective. He pointed out that gold is currently only seeking support near $4,074 (the 38.2% Fibonacci retracement level from August 2022), and the emergence of momentum divergence buy signals suggests the market may enter a longer period of consolidation. However, until the trendline resistance cluster between $4,197 and $4,264 is effectively broken, the medium-term bearish pattern for gold prices remains unchanged. Bank of America's judgment is even more pessimistic. In a report on July 16, the bank noted that **gold just recorded its worst quarterly performance in 13 years, "with the Death Cross signal, elevated net long positions, and similarities to significant historical tops all increasing the risk of a longer and deeper correction for gold prices."** The so-called "Death Cross" refers to a bearish technical pattern formed when a short-term moving average (typically the 50-day) falls below a long-term moving average (typically the 200-day). ## Silver's Industrial Attributes Provide Additional Support Despite the overall pressured environment, silver's identity as an industrial metal provides differentiated support, with some analysts believing silver is poised to continue outperforming gold. ING strategists stated that silver's performance reflects not only its safe-haven appeal but also benefits from improved sentiment in the broader industrial metals sector, particularly the 联动 effect brought by stronger copper prices. **They pointed out, "If the strength in industrial metals persists alongside safe-haven demand, silver is likely to continue outperforming gold."** Against the backdrop of accelerated AI infrastructure construction, the demand prospects for silver as a key industrial raw material have attracted market attention, with this structural factor viewed as the medium-to-long-term logic supporting silver's relative performance. ING also emphasized that gold "may remain sensitive to energy market dynamics and expectations for U.S. monetary policy," and while tensions in the Middle East provide overall support for precious metals, the market is weighing the game between softening U.S. economic data and inflation risks brought by rising energy costs. ## UBS Group AG Lowers Attractive Entry Point for Silver Although the relative outlook for silver is slightly more optimistic than for gold, UBS Group AG remains cautious about investors building positions in silver at this stage. **UBS Group AG this week lowered its attractive entry price target for silver from around $55 per ounce to the $48–$50 per ounce range.** UBS strategist Dominic Schnider wrote in a report on July 20: "We believe the headwinds facing silver recently may persist, with escalating Middle East tensions, higher opportunity costs, and a strong U.S. dollar continuing to suppress investor sentiment. The macro backdrop facing silver fails to provide investors with the motivation to increase long positions. Due to uneven investment demand, silver prices have not yet found a solid bottom." ## Mining Executives: Bull Market Logic Remains Intact In contrast to the cautious stance of institutional analysts, mining company executives remain optimistic about the long-term prospects for precious metals. Diane Garrett, Executive Chairman and CEO of U.S. gold and silver developer Hycroft Mining, told CNBC that the recent price decline was a "normal correction," **"This is not a bull market that has broken down."** She pointed out that gold has surpassed U.S. Treasury bonds to become the largest asset class and is becoming part of the financial system's infrastructure, while central banks have continuously purchased gold for 17 consecutive months, keeping fundamental support strong. ### Related Stocks - [BAC.US](https://longbridge.com/en/quote/BAC.US.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) - [ZSL.US](https://longbridge.com/en/quote/ZSL.US.md) - [GLDI.US](https://longbridge.com/en/quote/GLDI.US.md) - [IAU.US](https://longbridge.com/en/quote/IAU.US.md) - [GLL.US](https://longbridge.com/en/quote/GLL.US.md) - [GLD.US](https://longbridge.com/en/quote/GLD.US.md) - [GLDM.US](https://longbridge.com/en/quote/GLDM.US.md) - [GLDW.US](https://longbridge.com/en/quote/GLDW.US.md) - [SIVR.US](https://longbridge.com/en/quote/SIVR.US.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [SLVR.UK](https://longbridge.com/en/quote/SLVR.UK.md) - [JPM.US](https://longbridge.com/en/quote/JPM.US.md) - [JPMO.US](https://longbridge.com/en/quote/JPMO.US.md) - [JPX.US](https://longbridge.com/en/quote/JPX.US.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [ING.US](https://longbridge.com/en/quote/ING.US.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [HYMC.US](https://longbridge.com/en/quote/HYMC.US.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) - [JPM-M.US](https://longbridge.com/en/quote/JPM-M.US.md) - [JPM-C.US](https://longbridge.com/en/quote/JPM-C.US.md) - [JPM-D.US](https://longbridge.com/en/quote/JPM-D.US.md) - [JPM-L.US](https://longbridge.com/en/quote/JPM-L.US.md) - [8634.JP](https://longbridge.com/en/quote/8634.JP.md) - [JPM-K.US](https://longbridge.com/en/quote/JPM-K.US.md) - [JPM-J.US](https://longbridge.com/en/quote/JPM-J.US.md) - [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md) - [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md) - [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md) - [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md) - [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md) - [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md) - [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md) - [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md) - [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md) - [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md) - [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md) - [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md) - [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md) - [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md) - [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md) - [8648.JP](https://longbridge.com/en/quote/8648.JP.md) - [HYMCL.US](https://longbridge.com/en/quote/HYMCL.US.md) - [HYMCW.US](https://longbridge.com/en/quote/HYMCW.US.md) ## Related News & Research - [Silver (XAGUSD) Is up 2.58% on Jul 21: What Changed in Supply and Demand?](https://longbridge.com/en/news/293285186.md) - [Comex Silver Settles 3.70% Lower at $57.798 — Data Talk](https://longbridge.com/en/news/293654156.md) - [PRECIOUS-Gold falls 2% as Middle East tensions fuel inflation fears, rate-hike bets](https://longbridge.com/en/news/293627992.md) - [UBS drops below 5% Vallourec stake, holds 4.99% of shares](https://longbridge.com/en/news/293331620.md) - [Gibbs Wealth Management Increases Stake in Bank of America Corporation $BAC](https://longbridge.com/en/news/293721156.md)