2025 has been a remarkable year for gold and silver, with the yellow metal surging over 65% and silver more than doubling in value. Despite these strong gains, analysts suggest that both metals still have room to climb in 2026.
In its latest outlook, BMO Capital Markets projected that gold could reach new highs in the first half of next year, with an average price around $4,600 per ounce—5% higher than their previous forecast. For the full year, gold is expected to maintain an average near $4,550 per ounce, reflecting a moderate upward revision. The bank expects gold to outperform other precious metals throughout 2026.
Silver, meanwhile, is projected to peak in the fourth quarter at roughly $60 per ounce, with an annual average of $56.3. Current market prices have already pushed above $65 per ounce, highlighting strong investor interest. Analysts attribute the renewed enthusiasm for silver to both its industrial importance and its status as a hedge in times of monetary uncertainty.
Drivers Behind the Rally
BMO analysts highlight several factors supporting precious metals next year:
- Macro Trends: Falling interest rates are expected to weaken the U.S. dollar, which historically supports higher gold prices.
- Safe-Haven Appeal: Gold continues to attract investors as a hedge against inflation and market volatility, even after recent price corrections.
- Global Monetary Shifts: Trends such as “dedollarisation”—countries reducing reliance on the U.S. dollar—are expected to increase demand for gold as an alternative store of value.
While gold remains the primary focus, analysts caution that silver and platinum may face some short-term overbought conditions. Despite this, these metals can experience strong price surges during periods of supply deficits, similar to what has been seen this year.
Looking Ahead
The 2026 outlook suggests that precious metals will remain a core component of diversified investment strategies. Strong short-term factors like inflation concerns, combined with long-term pressures such as monetary debasement and geopolitical shifts, provide a solid foundation for continued growth. Investors eyeing the metals market may find 2026 to be another exciting year for gold and silver.
