Gold closed at $4,570.50 per troy ounce on May 18, holding a 41% year-over-year gain even after pulling back from its January 28 peak of $5,589. Silver traded at $77.54 per ounce on the same date, recovering 2.1% in a single session as geopolitical demand and supply concerns kept both metals elevated.
Central banks are driving the most significant structural demand story in the gold market. According to World Gold Council data, central banks purchased a net 244 metric tons in the first quarter of 2026 alone -- the fastest pace in over a year -- even as gold traded at record levels above $5,000 per ounce in January and February. That buying pace signals continued institutional confidence in gold as a reserve asset regardless of price level.
The World Bank's April 2026 Commodity Markets Outlook projects a 42% surge in its precious metals price index for the full year relative to 2025 averages, making precious metals the top-performing commodity class of 2026. The forces behind the forecast are structural: a Middle East conflict affecting global energy flows, accelerating inflation, slower economic growth, and sustained central bank reserve diversification away from dollar-denominated assets.
Gold peaked at $5,589 on January 28 before the rally paused. Between May 2025 and May 2026, gold rose from approximately $3,335 to $4,732 per troy ounce -- a 41% annual gain that outperformed nearly every major asset class.
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Source: USAGOLD -- https://www.usagold.com/daily-precious-metals-market-report-may-12-2026/