Key Points
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Gold hit a record $3,689 and may correct before topping $4,000 in 2026.
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Fed policy, geopolitics and central bank buying fuel the rally.
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Silver climbed to $42.50, its highest level in 14 years.
Gold has been on a strong run this year, hitting record highs and attracting investors looking for safety. But analysts say prices may pull back slightly before reaching the $4,000 per ounce mark in 2026.
On Tuesday, spot gold traded at about $3,680 per ounce after touching a new high of $3,689. Prices have jumped around 40% in 2025, following a 27% rise in 2024.
“Gold is in overbought territory and could see a small drop of about 5% to 6% before climbing again,” said Renisha Chainani, head of research at Augmont, a metals refiner in Mumbai.
What is driving the rally
Experts point to several factors boosting gold: expectations of U.S. interest rate cuts, strong central bank buying, and global tensions.
Lower interest rates usually make gold more attractive because it does not pay interest like bonds or savings accounts. Investors also see it as a safe option during political and economic uncertainty.
“Prices could still climb above $4,000 in 2026,” said Nicholas Frappell of ABC Refinery, adding that past forecasts have often been overtaken by faster-than-expected gains.
Silver follows gold’s lead
Silver has also benefited from the gold rally. It was trading at about $42.50 per ounce on Tuesday, the highest in 14 years.
Silver is both an investment asset and an industrial metal used in electronics and solar panels. Rising demand in both areas has pushed prices higher.
“Investor interest has given silver prices a solid push,” said Chirag Thakkar, CEO of Amrapali Group Gujarat, a leading silver importer.
Analysts agree that while a short-term correction is likely, both gold and silver remain in a strong uptrend heading into 2026.
