Precious Metals Pull Back After Historic Rally
Gold and silver prices continued their retreat from record highs on Wednesday, with both metals experiencing notable declines as investors reassess positions following an extraordinary year-long rally that saw precious metals more than double in value.
Gold traded at $5,116.35 on March 5, 2026, marking a significant pullback from its all-time high of $5,589.38 reached in January. The yellow metal dropped as much as 5.5% from recent intraday highs, briefly falling below $5,100 per ounce for the first time since February 19.
Silver faced even steeper losses, declining to $82.78 per ounce as of 9 a.m. Eastern Time—a $2.91 drop from the previous session. The white metal has retreated substantially from its recent peak above $100 per ounce reached just weeks ago.
A Year of Unprecedented Gains
Despite the current pullback, both metals remain dramatically higher than they were a year ago. Gold has gained approximately $2,265 per ounce over the past twelve months, while silver has surged an impressive 153% from $32.65 per ounce in March 2025.
The rally has been driven by a combination of factors, including persistent central bank buying, geopolitical uncertainty, and concerns about dollar-denominated assets. Silver's gains have been further amplified by a structural supply deficit of 150 to 200 million ounces annually, coupled with surging industrial demand from solar energy installations and AI data center construction.
Expert Outlook Remains Bullish Long-Term
Despite the current correction, several analysts maintain a positive outlook for precious metals in the coming months.
Thomas Winmill, portfolio manager at Midas Funds, predicts gold will reach over $5,500 per ounce within the next one to two months. He cites continued central bank demand as countries seek to diversify away from U.S. securities.
Darius Dale of 42 Macro echoed this sentiment, stating he expects "gold to grind higher" due to supportive macro conditions, a softening dollar outlook, and ongoing Treasury market imbalances.
However, Hiren Chandaria of Monetary Metals cautioned that investors should prepare for volatility. "I would not be surprised to see a steep pullback in the near term," he noted, though he added that any corrections would likely be "relatively short-lived" as structural drivers remain intact.
Silver Consolidating After Triple-Digit Run
Silver's retreat from triple-digit territory has been more pronounced than gold's pullback, consistent with its historically higher volatility. The metal briefly touched $120 per ounce earlier this year in what James Cordier, CEO of OptionSpreaders.com, described as "a perfect-storm scenario."
Cordier now expects silver to "consolidate below $100" until new market fundamentals emerge. Chandaria noted that silver typically amplifies gold's movements, experiencing steeper pullbacks during corrections but potentially stronger gains during upswings.
Investment Considerations
Financial advisors continue to recommend precious metals as a portfolio diversifier, though they caution against overallocation. Most experts suggest limiting precious metals exposure to between 5% and 20% of a diversified portfolio.
For retirement savers and long-term investors, the current pullback may present an opportunity to establish or add to positions in gold and silver. However, given the metals' recent volatility, dollar-cost averaging rather than attempting to time the bottom remains the prudent approach.
Sources: CBS News, Fortune, Midas Funds, 42 Macro, OptionSpreaders.com, Monetary Metals