Weekly Precious Metals Recap

It was another volatile week for precious metals as investors navigated Middle East headlines, a hawkish FOMC meeting, and shifting expectations for interest rates. While the Fed left rates unchanged, Chair Warsh reinforced the "higher-for-longer" narrative, and reports suggested that nine Fed officials now see the possibility of at least one additional rate hike this year. The result was a stronger U.S. dollar and renewed pressure on gold and silver. Despite the short-term weakness, the longer-term fundamentals remain intact. The biggest development of the week was the World Gold Council's 2026 Central Bank Survey, which showed a record 45% of central banks plan to increase gold reserves over the next 12 months. Central banks have now been purchasing roughly 1,000 tonnes of gold annually over the past four years, driven by reserve diversification, geopolitical uncertainty, and inflation concerns. Silver's outlook also remains constructive, with the market continuing to operate in a structural supply-demand deficit. Importantly, much of the speculative excess has been removed from the market. Futures positions have been pared back, ETF holdings have declined, and investor sentiment has cooled significantly. While painful in the short term, this creates a healthier foundation for the market moving forward. On the WatchGold front, we are excited to announce that Metals Focus will now be providing weekly and monthly research content on the platform. We also continue to prepare for the launch of WatchGold AI Strategy in the coming weeks.

The market may remain headline-driven in the near term, but central bank buying, geopolitical uncertainty, and investor under allocation to precious metals continue to support the long-term case for gold and silver.

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