A cautious recovery in gold and silver prices… and a “death cross” threatens gains

Analysts expected that gold and silver would face difficulty in returning to the record levels they recorded earlier this year.
This comes after gold prices rose in recent days after a selling wave that lasted for a long time.

Silver price

The price of silver in spot transactions rose to $59.47 per ounce in Wednesday’s trading, up by about 6.3% compared to last weekend’s close, while spot gold rose by 2.4% to $4,119.04 per ounce.
Commodity analysts at ING Bank, Warren Patterson and Eva Manthey, attributed this rise to operations to seize purchasing opportunities following the recent decline, and not to a fundamental shift in the global economy, according to the CNBC website.
Despite the recent recovery, gold and silver prices are still far from their highest historical levels recorded in late January, after a strong rise that extended throughout 2025 and continued at the beginning of this year.
The two analysts believe that the rise in interest rates and the strength of the US dollar contributed to reducing the attractiveness of precious metals, at a time when the war between Iran and Israel pushed oil prices to rise, which changed the priorities of investors in global markets.
They explained that the tensions in the Middle East still provide support for gold and silver prices, but the markets are balancing between the slowdown in US economic data on the one hand, and the inflationary risks resulting from rising energy prices on the other hand.

Gold prices

The report indicated that gold will remain highly sensitive to developments in energy markets and US monetary policy expectations, while silver may continue to perform better if industrial metals continue to be strong, in conjunction with continued demand for it as a safe haven.
He added that silver’s performance depends not only on its status as an investment asset, but also on its industrial use, especially with the improvement in the performance of copper and metals linked to technological industries.
On the other hand, Bank of America analysts warned of the possibility of gold suffering a further decline, after it recorded its worst quarterly performance in 13 years during the second quarter ending in June.
The bank explained that the appearance of what is known as the “death cross” in technical analysis, in addition to the rise in buying positions and the similarity of current indicators to previous peaks, increases the possibility of gold being subjected to a deeper and longer price correction.
The “death cross” refers to a technical pattern that occurs when the short-term moving average price falls below its long-term average, and is one of the signals that investors watch for the possibility of a continuation of the downward trend.
In the silver market, UBS Bank reduced the price it considers appropriate for building new investment positions, from about $55 to a range between $48 and $50 per ounce.

Geopolitical tensions

The bank explained that the escalation of tensions in the Middle East, the high cost of holding metals in light of high interest rates, in addition to the strength of the dollar, continue to put pressure on investor morale, stressing that silver has not yet established a strong price base that would allow the start of a sustainable rising wave.
On the other hand, Diane Garrett, CEO and Chairman of the Board of Directors of an American gold and silver development company, expressed a more optimistic view, considering that the recent decline represents a natural correction and not the end of the upward trend.
She said that the foundations supporting gold are still strong, noting that the precious metal has become competing with US Treasury bonds as one of the most important investment assets, as central banks continue to buy gold for the seventeenth month in a row.
She added that silver also has strong supporting factors, as its importance is not limited to being a monetary metal, but rather it is an essential element in modern industries, most notably artificial intelligence applications and high-performance computers, with no practical alternative to it in many industrial uses.