Gold prices have been on an unstoppable rally, crossing the $2,800 mark and heading towards $3,000—but analysts say $3,500 per ounce is inevitable.
While gold has been the star of the show, silver remains highly volatile, making it a tricky yet rewarding asset to trade. Despite short-term pullbacks, market fundamentals suggest silver could eventually outperform gold as demand continues to rise.
✔ Will gold hit $3,500 sooner than expected?
✔ Why is silver lagging behind, and will it catch up?
✔ What factors are driving the long-term bull market in gold and silver?
📈 Gold’s Bull Market is Strong – But Expect Volatility
🔹 Gold prices have surged 11% in 2025 alone, supported by strong investor demand and global economic uncertainty.
🔹 Analysts have warned about profit-taking after breaching $2,800, leading to short-term fluctuations.
🔹 However, long-term trends remain bullish, with many investors eyeing $3,500 as the next major target.
📌 Key Drivers of Gold’s Price Surge:
✅ Inflation concerns continue to fuel safe-haven demand.
✅ Geopolitical tensions are pushing central banks to increase gold reserves.
✅ ETF demand is still below its 2020 peak, suggesting more room for upside.
📉 Silver’s Rollercoaster Ride – Can It Outperform Gold?
🔹 Silver prices have struggled to match gold’s gains, despite strong fundamentals.
🔹 Silver’s volatility is twice that of gold, making it more unpredictable.
🔹 On Friday, silver surged from $33 to $34 per ounce, only to see heavy selling pressure bring it back to $32.67—a 4% drop from its high.
📌 Why Analysts Still Believe in Silver’s Long-Term Potential:
✅ Supply shortages and increasing demand could fuel silver’s next big rally.
✅ Many experts predict silver will eventually outperform gold—but patience is key.
✅ Industrial demand for silver, particularly in green energy and technology, remains strong.
📊 Bank of America: Gold Could Hit $3,500 with Just a 10% Demand Increase
🔹 According to Bank of America (BoA), a mere 10% rise in investor demand would be enough to push gold prices to $3,500 per ounce.
🔹 ETF inflows into gold are still far below the levels seen during the 2020 gold rally, indicating plenty of room for growth.
🔹 Chinese investment in gold is accelerating, as the government has approved a new pilot project allowing 10 insurance companies to invest 1% of their assets in gold.
📌 What Does This Mean for Gold Investors?
✔ Chinese insurance firms could buy up to $28 billion worth of gold (about 300 tonnes).
✔ This additional demand could push prices higher, strengthening gold’s long-term outlook.
✔ Global central banks are also increasing their gold reserves, further fueling demand.
💡 Why It’s Hard to Be Bearish on Gold & Silver Right Now
📌 Major Factors Supporting a Bullish Market:
✔ Central banks continue accumulating gold as a hedge against inflation and market volatility.
✔ Growing investment demand from China and institutional investors is adding pressure to supply.
✔ Silver’s industrial demand is expected to rise, especially in clean energy technologies.
✔ Donald Trump’s trade policies and global uncertainty may push more investors towards precious metals.
With these strong fundamentals, analysts say there’s no reason to be bearish on gold and silver.
🔍 Final Verdict – Should You Invest in Gold & Silver Now?
✔ Gold’s rally is far from over, with $3,500 now in sight.
✔ Silver’s short-term fluctuations may frustrate investors, but its long-term outlook remains positive.
✔ Both metals continue to be top choices for hedging against inflation and economic uncertainty.
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