BULLION MARKET OUTLOOK

🟡 Gold

Gold prices started the week on a softer note as a stronger U.S. dollar, higher Treasury yields, and firm crude oil prices outweighed safe-haven demand arising from renewed geopolitical tensions in the Middle East.

* Spot Gold is trading around US$4,008/oz.

* Ongoing tensions around the Strait of Hormuz continue to support safe-haven buying.

* However, rising inflation expectations and the possibility of the U.S. Federal Reserve keeping interest rates higher for longer are limiting gains in gold.

Technical Levels (Gold)

🔹 Resistance: US$4,200–4,260; above this, targets are US$4,350 and US$4,500.

🔹 Support: US$4,091, followed by US$4,000 and US$3,959.

⚪ Silver

Silver is currently trading near US$59/oz. Despite correcting nearly 52% from its all-time high of US$121.62, the long-term fundamentals remain constructive.

Key Bullish Factors for Silver

✅ The global silver market is expected to record its sixth consecutive year of structural supply deficit.

✅ Strong industrial demand from solar energy, AI data centres, electric vehicles, and electrification continues to support long-term consumption.

✅ The Gold-Silver Ratio is around 69:1, a level that has historically favored silver outperformance.

✅ Major institutions maintain bullish 2026 outlooks:

* J.P. Morgan: ~US$81/oz

* HSBC: ~US$75/oz

* Goldman Sachs: US$85–100/oz (subject to sustained industrial demand)

Technical Levels (Silver)

🔹 Resistance: US$61.33–62.81; above this, the next targets are US$64–65.

🔹 Support: US$60.69, US$59, US$58, with a stronger support zone at US$56–58.

📌 Outlook

Precious metals remain caught between opposing forces. Geopolitical risks, structural supply deficits, and robust industrial demand continue to provide long-term support—especially for silver. However, a stronger U.S. dollar, elevated bond yields, and expectations of prolonged restrictive monetary policy may keep prices volatile in the near term.