Gold Breaks Record Highs, Silver Pulls Back Before Next Leg Higher: Analysts Target $3,700 and $48

by Donnie Dauria

Gold extended its record-setting rally on Tuesday, pushing to fresh highs above $3,500 as investors positioned ahead of an expected Federal Reserve rate cut later this month. The move marks the sixth straight session of gains and underscores the growing case for gold as a core portfolio holding amid policy uncertainty and geopolitical risks.

Spot gold briefly spiked to $3,508.50 before settling near $3,492 per ounce, while December futures climbed 1.4% to $3,563.40. The backdrop remains supportive: a softer U.S. dollar, declining confidence in Fed independence, and renewed safe-haven demand as global trade tensions escalate.

President Trump’s public attacks on Fed Chair Jerome Powell — and his controversial removal of Governor Lisa Cook — have injected fresh uncertainty into U.S. monetary policy. Treasury Secretary Scott Bessent attempted to calm markets by defending the Fed’s independence, but political overhang remains a major driver steering investors toward hard assets.

Silver cooled after a powerful breakout, slipping 1.5% to $40.61 per ounce following its strongest close since 2011. Analysts say the pullback is healthy and sets the stage for a push toward higher resistance levels.

Outlook for Gold

  • Medium-Term Target: $3,700 per ounce

  • Drivers: Weaker dollar, de-dollarization, central bank buying, and lower borrowing costs

Sandip Raichura, CEO of PL Capital, reiterated a bullish outlook. “Gold has weathered volatility and continues to emerge stronger. We’ve been bullish for over two years, and the trend is intact. With U.S. dollar weakness and the global shift toward alternative trade regimes, gold is set to move higher.”

NS Ramaswamy, Head of Commodities at Ventura, expects futures to gain another 2–3% by the end of 2025, with prices trading between $3,600 and $3,680. He added that Friday’s U.S. jobs data will be pivotal: weaker labor figures could all but guarantee a Fed cut and extend gold’s run.

Investor Takeaway: Gold remains a buy-on-dips opportunity. Lower interest rates reduce the opportunity cost of holding non-yielding assets, while steady central bank demand — particularly from China — provides a structural floor under prices.

Outlook for Silver

  • Medium-Term Target: $42–$48 per ounce

  • Drivers: Industrial demand, green energy, and momentum flows

Silver’s breakout above long-term resistance at $34 has reset the technical landscape. Raichura sees the metal heading toward $42 and eventually $48. Ramaswamy added that Chinese industrial demand, reflected in August’s robust PMI, is reinforcing fundamentals.

Investor Takeaway: Silver’s dual role as both a safe haven and an industrial metal tied to solar, electrification, and AI adoption gives it leverage to outperform gold in percentage terms. After the current consolidation, upside targets between $43–$45 by late 2025 remain intact.

Portfolio Positioning

  • Gold: Core long-term holding; accumulate on pullbacks toward $3,450–$3,480.

  • Silver: Tactical buy; expect near-term volatility but a path toward $42–$45 over the next 12–18 months.

  • Macro Theme: De-dollarization, geopolitical instability, and rate cuts remain key tailwinds.

Precious metals continue to validate their role as both insurance and opportunity within a diversified portfolio. For investors aligned with long-term wealth preservation and exposure to secular demand trends, gold and silver remain essential allocations.

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