Gold, silver poised for new peaks in 2026 as central bank buying, rate cuts fuel rally
PTC Web Desk: After delivering exceptional gains in 2025, gold and silver are expected to maintain their upward momentum in 2026, with prices likely to scale fresh highs amid strong global demand, monetary easing and geopolitical uncertainties, according to a new commodities outlook report by ING.
The report notes that precious metals outperformed expectations in 2025, as sustained price increases significantly influenced buying patterns. Looking ahead, gold is projected to remain a preferred safe-haven asset, supported by a combination of economic and political factors.
Why gold prices may rise further in 2026
According to ING’s Commodities Outlook 2026, several key drivers are expected to push gold prices higher next year:
Central banks across the world continue to increase their gold reserves as part of diversification strategies.
Interest Rate Cuts: Anticipated rate reductions by the US Federal Reserve could lower borrowing costs, making non-yielding assets like gold more attractive.
Weak US Dollar: A softer dollar generally boosts gold demand globally.
ETF Inflows: Rising investments in gold-backed exchange-traded funds (ETFs) are adding to upward price pressure.
Geopolitical Risks: Ongoing global conflicts and trade tensions continue to strengthen gold’s appeal as a safe asset.
The report estimates that gold prices could average around $4,325 per ounce in 2026.
ING highlighted that central bank purchases remained robust in 2025. During the third quarter alone, central banks bought nearly 220 tonne of gold, marking a 28% increase compared to the previous quarter. Countries such as Poland, China and Kazakhstan emerged as major buyers.
Investor interest also stayed firm, with global gold ETFs adding approximately 222 tonne during the year, reinforcing bullish sentiment.
Silver also posted record levels in 2025 and is expected to stay in demand in 2026, driven largely by industrial consumption. ING pointed out that silver continues to face supply deficits, a trend expected to extend into its fifth consecutive year.
Key sectors supporting silver demand include: Solar energy, electric vehicles (EVs) and electronics manufacturing.
Given these factors, the report projects average silver prices of around $55 per ounce in 2026.
Policy developments to remain in focus
The outlook also notes that political developments in the US, including expectations around interest rate policy and leadership choices at the Federal Reserve, could further influence precious metal prices. Any shift toward easier monetary conditions would likely benefit gold and silver markets.
- With inputs from agencies
