Gold and Silver Score All-Time Highs, Are Their Destinies Intertwined?

The current rally in the precious metals which had been parabolic already just turned it up another notch. The accelerant added to the already on fire precious metals was Donald Trump threatening 100% reciprocal tariffs on our America’s largest trading partner, China. He later backed off slightly, but the damage had been done and both gold and silver did not back off from the highs made from the uncertainty surrounding the administration’s negotiation tactics. 

Gold has been hitting new records 15 times since September. Still, Mondays near $100 price advance is causing big names to re-evaluate their price targets. Bank of America increased its price projections for gold and silver on Monday, though it acknowledged the possibility of a short-term pullback. The financial institution revised its 2026 gold forecast upward to a peak of $5,000 per ounce, with a mean estimate of $4,400. Silver's projection was set at a high of $65 per ounce, with an average around $56.25, according to Reuters. 

Gold futures closed higher by $94.50 (2.34%) at $4,130. This was gold’s largest single day move since after “Liberation Day” on April 9th when gold gained $101.50. However, it followed the Liberation Day sell off losing $208 in the three days following. 

Silver futures are another story they have been on a tear since August but have not reached a new all-time high until Monday (intra-day on Wed.). Even more noteworthy is that backwardation in silver prices. Backwardation refers to spot prices being below futures prices, and is uncommon to see. Spot silver Made its new record last Thursday intra-day and Friday on a closing basis. Spot silver is now 5.18% above the previous record reached in 2011. Spot silver is now trading at $52.33 scoring its fifth new record high since the start of the month.

Silver futures gained $3.26 (6.86%) to close at $50.7, The first new record for silver futures since 2011. 

Wishing you as always good trading,