Emre Yumlu 
Precious metals began the week under selling pressure after a period marked by consecutive record highs. Following strong rallies, both gold and silver faced profit-taking, while easing geopolitical tensions reduced demand for traditional safe-haven assets. As a result, prices retreated from recent peaks, signaling a short-term correction rather than a broader trend reversal.
Gold Retreats After Reaching All-Time Highs
Gold prices moved lower after setting a historic record late last week. Spot gold reached an all-time high of $4,549.71 per ounce on Friday before reversing direction at the start of the new week. In early trading, spot gold slipped to around the $4,494 level.
Market analysts describe this move as a technical pullback driven largely by profit-taking. After a rapid ascent to record territory, investors appeared willing to lock in gains, leading to short-term price pressure. Despite the decline, gold remains near historically elevated levels, underscoring the strength of the broader trend.
Silver Pulls Back From Historic Peak
Silver followed a similar path. The metal surged to a record high of $83.62 per ounce during the session before losing momentum. Prices later stabilized around $77.76, reflecting heightened volatility after an extended rally.
The sharp move lower from peak levels highlights silver’s sensitivity to shifts in sentiment. While demand remains strong, especially from industrial sectors, short-term corrections have become more frequent as prices push into uncharted territory.
Decreased Geopolitical Risks Put Pressure on Gold and Silver Prices
One of the key drivers behind the pullback in precious metals has been a softening in geopolitical risk perceptions. Recent statements suggesting progress toward ending the war in Ukraine have reduced the urgency for safe-haven positioning.
US President Donald Trump stated that an agreement to end the conflict is “very close,” reinforcing expectations that diplomatic momentum may continue. Such developments typically weaken demand for assets like gold and silver, which tend to benefit most during periods of heightened uncertainty.
Silver Continues to Outperform Gold in 2025
Despite the recent correction, silver remains one of the strongest-performing assets of the year. Since the beginning of 2025, silver prices have risen by approximately 181%, significantly outperforming gold, which is up around 72% over the same period.
Silver’s outperformance has been supported by several structural factors, including its classification as a critical mineral in the US, constrained supply, low inventory levels, and robust industrial demand.
Gold and Silver Long-Term Outlook is Positive
Looking ahead, analysts remain optimistic about the longer-term outlook for both metals. A shift toward a more accommodative stance by the US Federal Reserve could push gold toward the $5,000 level. For silver, continued rate cuts, strong industrial usage, and ongoing supply tightness could support prices near $100 in 2026.
This content does not constitute investment advice.
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