Market Updates

Gold’s Path to $3,500 is Clear, and Silver is Set to Follow!

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.

🚀 Stay ahead of market trends, expert analysis, and the latest price movements by visiting:
DailyForex.pk 📊🔥

Hamza Shah

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