Precious Metals Rallying Again, Silver Surges 3.96% Intraday, Gold Up 0.86% Intraday

Gold and silver prices rose sharply on Monday as rising geopolitical tensions and increased demand for safe-haven assets supported the rally. Spot gold climbed 0.86% intraday to $4,475 per ounce, while silver surged 3.96% to $78.44 per ounce according to market data. The move reflects renewed investor appetite for defensive assets amid uncertainty related to South America and global energy markets.

The rally in precious metals is also being supported by monetary and industrial demand. Analysts at UBS highlighted that a weaker U.S. dollar and elevated geopolitical uncertainty are jointly supporting gold demand, with price targets for 2026 raised to $5,000 per ounce. Silver benefits from both monetary demand and industrial usage, with a supply deficit in the market making it a compelling asset for investors.

Precious-metals equities also saw significant gains. Major gold miners such as Coeur Mining (CDE.US) and New Gold (NGD.US) jumped about 9%, while Agnico Eagle (AEM.US) and Kinross Gold (KGC.US) rose roughly 5%. Silver-focused names like Endeavour Silver (EXK.US) advanced 15%, and First Majestic Silver (AG.US) rose 11% according to market analysis.

Why Did This Happen?

The recent surge in gold and silver prices is being driven by several factors, including rising geopolitical risk and a weaker U.S. dollar. Developments in South America, including events related to Venezuela, have increased market uncertainty, leading to a reallocation of capital into defensive assets.

In addition, central banks and institutions are diversifying away from dollar assets and increasing allocations to gold and silver. This trend is reinforced by global geopolitical developments and the ongoing de-dollarisation movement.

How Did Markets React?

Precious-metals stocks and bullion prices responded positively to the rally in gold and silver. The surge in gold prices has been extended by the broader strength of the gold–silver ratio, which is currently near 60. Historically, the ratio has moved within a wide range of 60 to 100, and a structural shift in silver demand suggests it may trend lower over time.

Market participants are also watching for signs of continued strength in the 200-day moving average, which serves as a key trend indicator for silver. Prices consistently above this line indicate continued market optimism.

What Are Analysts Watching Next?

Analysts at Morgan Stanley and JPMorgan remain optimistic about gold and silver for the next 3–6 months. Morgan Stanley strategist Amy Gower reiterated a positive outlook on metals in 2026, pointing to geopolitical risks as a key upside driver.

In the near term, technical factors may introduce volatility. JPMorgan warned that the Bloomberg Commodity Index is set to undergo its annual weight rebalancing in early January, a process that could temporarily cap price swings and lead to some selling pressure in both gold and silver.

Investors are also monitoring key levels for gold and silver. Gold is currently trading around $4,470 (spot), and a break above this level could lead to a retest of all-time highs near $4,550. Silver is consolidating between $71 and $78, with a breakout above $80 opening the path to $95–$100.

For 2026, the price outlook for silver remains bullish. In a bullish scenario, a combination of strong fundamentals, high industrial demand, and positive market sentiment could push silver prices to $85–$90 per ounce. A moderate or base case scenario projects prices in the $70–$80 range, consistent with stable demand trends and ongoing supply deficits.

The outlook for gold is equally robust. UBS and other major banks forecast gold reaching $4,900 to $5,055 per ounce by December 2026, with UBS targeting $5,000 as central bank buying and fiscal uncertainty sustain safe-haven demand.

Investors are advised to adopt a diversified approach to commodities in 2026. A tripod strategy—investing some amount now, deploying part via SIPs, and keeping some cash ready for market corrections—can help manage volatility and capitalize on long-term trends.