Precious Metals Attempt Recovery After Historic Decline
Gold and silver prices showed signs of stabilization on Monday as investors assessed the damage from last week's dramatic selloff, which saw gold post its worst weekly performance in 15 years.
As of early trading on March 24, gold was quoted at approximately $4,384 per ounce, down $43 from the previous session. Silver traded at $70.13 per ounce, marking a modest $0.74 gain from the day before.
The March Correction
The pullback has been severe. Gold plummeted 9.6% last week—its biggest weekly loss since September 2011—as investors grappled with the economic implications of escalating tensions in the Middle East. The metal is on track for its worst month since October 2008.
Silver has not been spared, tumbling to its lowest closing level since December. The metal is now down more than 1% for 2026, a stark reversal from its remarkable 135% surge in 2025.
"Expect steep pullbacks in the near term, but corrections will be relatively short-lived," said Hiren Chandaria of Monetary Metals. He noted that dips will likely attract fresh buying and the upward trend should resume.
Expert Outlook Remains Bullish
Despite the volatility, market analysts maintain a constructive long-term view on precious metals.
Thomas Winmill of Midas Funds predicts gold could reach over $5,500 per ounce within one to two months, citing strong central bank demand as institutions diversify away from U.S. securities.
Darius Dale of 42 Macro offered a straightforward assessment: "Expect gold to grind higher." He pointed to rising global liquidity, a softening dollar outlook, and geopolitical Treasury market imbalances as supporting factors.
For silver, James Cordier of OptionSpreakers.com expects prices to stabilize below $100 per ounce until new market fundamentals emerge, noting the metal recently retreated from a $120 peak.
Year-Over-Year Performance
The broader picture remains positive for precious metals investors. Gold is up 45% from its year-ago price of approximately $3,020 per ounce, while silver has surged an impressive 112% from $33 per ounce a year ago.
Chandaria cautioned that silver will amplify gold's movements in both directions due to its thinner market structure, warning investors to expect higher volatility and steeper corrections.
Industrial Demand Supports Silver
Silver's unique position as both a precious metal and industrial commodity continues to influence its price dynamics. Growing demand from the renewable energy and electronics sectors provides fundamental support, though this dual nature also contributes to more pronounced price swings compared to gold.
Financial advisors note that exchange-traded funds offer an easier path for investors seeking precious metals exposure, particularly for portfolio rebalancing purposes where physical bullion's variable bid-ask spreads can present challenges.
Looking Ahead
The key drivers for precious metals in the coming weeks will likely include geopolitical developments, Federal Reserve policy expectations, and the trajectory of the U.S. dollar. While near-term volatility appears inevitable, the consensus among analysts suggests the secular bull market in precious metals remains intact.
For investors considering an allocation to gold or silver, the recent correction may represent an opportunity—though Winmill warns of "extreme" volatility ahead driven by margin liquidation, producer forward selling, and institutional shorting activity.
Sources: Fortune, CBS News, CNBC