Gold and silver prices climbed in early trading Wednesday, recovering some ground after weeks of declines, but analysts remain divided on whether the metals can regain momentum to challenge the all-time highs they reached earlier this year.
Spot silver traded at $59.47 per ounce as of 6:33 a.m. ET Wednesday, up roughly 6.3% from $55.90 per ounce at the end of last week. Spot gold gained about 2.4% over the same period to trade at $4,119.04 per ounce.
According to a Wednesday note from ING commodities strategists Warren Patterson and Ewa Manthey, the gains reflect “bargain hunting after recent weakness” rather than any fundamental change in the geopolitical or macroeconomic landscape. Both metals remain substantially below the peaks they hit in late January, when spot gold reached $5,589.38 per ounce and silver touched $121.67 per ounce following a powerful rally that extended through 2025.
Interest Rates and Dollar Strength Weigh on Metals
Higher interest rates and a stronger U.S. dollar have dampened appetite for precious metals in recent months. At the same time, elevated oil prices stemming from the conflict involving Iran have redirected market attention to energy markets.
“While tensions in the Middle East remain supportive for precious metals, markets are weighing softer U.S. economic data against the inflationary risks from higher energy costs,” Patterson and Manthey wrote.
The ING analysts said gold is “likely to remain sensitive to developments in energy markets and expectations for U.S. monetary policy.” They noted that silver “could continue to outperform if strength in industrial metals persists alongside safe-haven demand,” pointing to its dual role as both a haven asset and an industrial commodity with support from improving sentiment in metals like copper.
Bank of America Sees Risk of Deeper Correction
Analysts at Bank of America struck a more cautious tone, warning that gold prices could fall further after posting their worst quarterly performance in 13 years during the three months ended June 30.
“A death cross signal, elevated net-long positioning and similarities to major peaks raise the risk of a longer, deeper correction,” BofA said in a July 16 note. A death cross occurs when a security’s 50-day moving average drops below its 200-day moving average, a technical pattern often interpreted as bearish.
UBS also expressed skepticism about silver’s near-term prospects. The Swiss bank lowered its target for an attractive entry point from around $55 per ounce to a range of $48 to $50 per ounce.
“We believe near-term headwinds for silver are likely to persist as escalating Middle East tensions, higher opportunity costs, and a firm U.S. dollar continue to weigh on investor sentiment,” UBS strategist Dominic Schnider wrote in a July 20 note. “With investment demand patchy, silver prices have yet to find a solid floor.”
Bull Market Intact, Mining Executive Says
Not everyone shares that pessimism. Diane Garrett, executive chair and CEO of U.S.-based gold and silver developer Hycroft Mining, told CNBC on Tuesday that the recent price weakness represents a “normal correction” rather than a reversal of the broader uptrend.
“The fundamentals for commodities remain extremely strong, particularly on gold because it has surpassed the U.S. Treasuries as the number one asset class, and it’s becoming the architecture of the financial system,” Garrett said. She pointed to 17 consecutive months of central bank purchases as evidence of sustained demand.
Garrett also highlighted silver’s importance beyond its monetary role, noting its critical use in advanced technology. “It’s feeding the AI revolution and the supercomputers — all of that that you have to have silver for, and there’s no substitute,” she said.
Source: www.cnbc.com — https://www.cnbc.com/2026/07/23/silver-gold-prices-rebound-rally-correction.html
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