Gold and silver markets entered a consolidation phase in early 2026 following record gains in 2025, with gold retreating from its January peak near $5,589 per ounce to the $4,500-$4,600 range by May, while silver pulled back from its January high of $121.64 to approximately $73-$74. The retracement follows silver's 144% gain in 2025 and gold's 65% advance, the sharpest annual gains for both metals since 1979.
Despite the pullback, analysts maintained a broadly constructive outlook. Central bank purchases of gold remained elevated in the first quarter of 2026, with net buying of approximately 244 tonnes. New buyers included Guatemala, Indonesia, Malaysia, Cambodia, Uganda, and Kenya - adding to a broadening global base of sovereign demand that has been cited as structural support for gold prices.
Silver's drawdown of roughly 40% from its January high drew attention from institutional investors reassessing allocation strategies. Research from BullionVault and other platforms cited growing consensus among wealth managers that precious metals warrant higher portfolio allocations than historical norms, given persistent central bank demand and industrial use of silver in solar panels and electronics manufacturing.
CME Group analysis noted that silver's relative underperformance compared to gold over the same period suggests potential upside if industrial demand strengthens alongside continued central bank gold buying.
Source: CNBC -- https://www.cnbc.com/2026/02/03/gold-and-silver-rebound-after-historic-wipeout-as-analysts-say-thematic-drivers-stay-intact-.html