Gold Extends Historic Rally to $5,387
Gold prices surged to $5,387.12 per ounce on March 2, 2026, extending what has become one of the most remarkable rallies in the precious metal's history. The yellow metal continues its seventh consecutive month of gains, driven by escalating geopolitical tensions in the Middle East and persistent safe-haven demand from global investors.
According to CNBC, U.S. and Israeli strikes on Iranian targets in late February triggered an immediate surge in safe-haven buying that pushed spot gold to an intraday high of $5,299 per ounce. Prices have continued climbing as investors seek protection from mounting global uncertainty.
Silver Consolidates Near $95, Eyes $100
Silver was valued at $94.26 per ounce at 8:45 a.m. Eastern Time on March 2, representing a modest $0.72 downtick from the previous day but more than a $62 gain over the past year. The white metal remains within striking distance of the psychological $100 milestone it breached briefly in January.
Bank of America has issued remarkably bullish projections for silver, forecasting prices could reach $135 to $309 per ounce by the end of 2026. The firm cites structural deficits and rising industrial demand as key drivers behind its outlook.
Fifth Consecutive Year of Silver Deficit
The Silver Institute reported the silver market recorded its fifth consecutive year of structural deficit in 2025, with demand outstripping supply by roughly 95 million ounces. The cumulative shortfall since 2021 has now climbed above 820 million ounces—a supply gap that continues to provide fundamental support for prices.
Analysts project silver prices could increase by 7.29% over the next seven days, potentially reaching $100.60 by March 7, 2026.
Major Banks Raise Price Targets
Wall Street institutions have scrambled to revise their forecasts higher. J.P. Morgan raised its end-of-2026 gold price target to $6,300 per ounce, while Bank of America projects $6,000 within twelve months. Goldman Sachs has also revised forecasts upward.
Julia Du, a senior commodities strategist at ICBC Standard Bank, sees gold prices pushing as high as $7,150 per ounce, citing continued geopolitical uncertainty and central bank diversification away from the dollar.
Fed Expected to Hold Rates Steady
CME Group data shows 95.6% of market participants expect Federal Reserve rates to remain unchanged at 3.50-3.75% in March, with only a 4.4% probability of a rate cut to 3.25-3.50%. The Fed's cautious monetary policy stance continues to support precious metals as investors weigh inflation risks against economic uncertainty.
HSBC attributes the ongoing rally to a combination of safe-haven demand, a weaker U.S. dollar, and policy uncertainty. Geopolitical tensions, falling real interest rates, and efforts by investors and central banks to diversify away from the dollar are reinforcing gold's role as the world's ultimate haven.
Record-Breaking Performance Continues
Gold's 2026 performance builds on an extraordinary 2025, when the metal set 53 new all-time highs and gained more than 60 percent for the year—its best annual performance since 1979. Global gold demand exceeded 5,000 tonnes for the first time in history in 2025, generating an unprecedented $555 billion in value.
Central bank purchases remained near multi-decade highs at 863 tonnes last year, signaling continued institutional confidence in gold as a reserve asset.
Sources: Fortune, CNBC, CME Group, J.P. Morgan, Bank of America, Silver Institute, HSBC, ICBC Standard Bank