Gold traded above $4,550 per ounce this week, supported by indications that the United States and Iran were moving closer to an agreement that could end the ongoing conflict and reopen the Strait of Hormuz. The price held near recent highs after a sharp mid-May sell-off driven by sticky inflation and a stronger US dollar, which gave way to a late-week recovery as Middle East tensions eased.
Silver experienced even sharper volatility during the same period, trading in a range between $73 and $83 per ounce between May 14 and May 21. The spread between gold and silver performance reflects the dual role silver plays as both a precious metal and an industrial input, making it more sensitive to manufacturing and economic outlook shifts than gold.
The dominant market narrative has been the tension between geopolitical uncertainty, which historically supports safe-haven demand, and the inflationary implications of elevated energy costs. That combination complicates the path for central bank rate relief, which had been a key anticipated catalyst for metals prices earlier in the year.
Long-term forecasts remain bullish. Swiss precious metals trader MKS PAMP is calling for a new all-time high of $5,800 gold by end of 2026, citing structural stagflationary pressures. HSBC raised its silver price forecast significantly, now projecting an average of $75 per ounce for full-year 2026.
Source: IndexBox -- https://www.indexbox.io/blog/precious-metals-update-gold-and-silver-trends-in-may-2026/