OCBC’s Sim Moh Siong and Christopher Wong have lowered their end‑2026 forecasts for Gold and Silver, citing a tougher near‑term macro backdrop with higher real yields, a stronger US Dollar (USD) and slower ETF demand.
However, they keep a mildly upward trajectory, arguing the medium‑term diversification role of Gold and structural deficit story in Silver remain intact, with stronger conviction contingent on a friendlier macro environment
Lower targets yet medium-term view supported “Gold and silver forecast levels have been lowered, but not the direction. The revision reflects a tougher near-term macro setup.” “Gold and silver forecasts have been revised lower to $4360 and $67, respectively for end-2026 (PreciousMetals Focus – Gold and Silver: Forecasts revised lower, 30 Jun 2026). The change reflects a more challenging near-term macro backdrop, rather than a full reassessment of the medium-term structural case for precious metals.” “In particular, the near-term setup has deteriorated for both metals.
Real yields have repriced higher, the USD has strengthened, Fed expectations have shifted in a more hawkish direction while ETF demand has slowed.” “Turnaround in gold and silver prices require the macro environment to improve and this includes easing in real yields, a softer USD or a clearer unwind in hawkish Fed expectations.” “Without that, rallies are likely to be faded and gold, silver may spend more time consolidating below previous highs.” Author