Gold Stages Recovery After Volatile Week
Gold prices rebounded sharply this week, climbing back above $5,160 per ounce on Thursday as investors sought safety amid escalating geopolitical tensions in the Middle East. The recovery comes after a turbulent period that saw the precious metal drop approximately 6% from recent highs above $5,400 to approach the $5,000 level.
As of March 4, 2026, gold was valued at $5,184 per ounce, marking a $23 uptick from the previous day and an impressive $2,265 gain over the past year. The yellow metal has now more than doubled in value over the past 12 months, rewarding investors who maintained their positions through recent market volatility.
Silver Experiences Sharp Pullback
Silver has faced more pronounced selling pressure, with prices falling nearly 12% to below $80 per ounce before stabilizing. As of March 5, the white metal traded at $82.78 per ounce, down $2.91 from the previous session but still up more than $50 compared to last year.
According to Jateen Trivedi, VP Research Analyst at LKP Securities, gold has remained highly volatile as CME prices experienced a sharp sell-off from $5,400 to $5,000 before finding support and recovering toward the $5,200 level.
Dollar Strength and Fed Policy Weigh on Prices
The recent pullback in precious metals prices has been driven largely by a strengthening U.S. dollar, which rose above one-month peaks. The stronger greenback made dollar-denominated bullion more expensive for buyers using other currencies, dampening international demand.
Additionally, reduced expectations for Federal Reserve interest rate cuts have exerted downward pressure on gold prices. Market participants have scaled back their forecasts for monetary easing as persistent inflation concerns continue to influence Fed policy discussions.
Expert Outlook Remains Bullish
Despite recent volatility, market experts maintain a positive long-term outlook for precious metals. Thomas Winmill, portfolio manager at Midas Funds, predicts gold will reach prices of over $5,500 per ounce in the next month or two, citing strong central bank demand as institutions diversify away from U.S. securities.
"The macro backdrop is supportive," noted Darius Dale, founder and CEO of 42 Macro, who expects gold to "grind higher" over time.
Several major financial institutions have projected the metal could rally beyond $6,000 per ounce by the end of 2026, driven by continued central bank gold reserve building and ongoing geopolitical uncertainty.
Silver's Industrial Tailwinds
Silver is expected to benefit from tight supply-demand dynamics and significant industrial use cases, particularly around artificial intelligence applications. However, James Cordier, CEO of OptionSpreaders.com, suggests the metal "should consolidate below $100 until new fundamentals present themselves."
Hiren Chandaria, managing director at Monetary Metals, expects any corrections to be "relatively short-lived," noting that silver tends to amplify gold's directional moves with higher volatility.
Investment Considerations
Financial advisors continue to recommend that investors allocate no more than 5-10% of their portfolio to precious metals, emphasizing a long-term strategy rather than attempting to time short-term price movements. With gold maintaining year-to-date gains exceeding 17% despite recent losses, the asset class continues to serve its traditional role as a hedge against uncertainty.
Sources: CBS News, Fortune, IndexBox, LKP Securities, Midas Funds, 42 Macro, OptionSpreaders.com, Monetary Metals