Gold price increases, silver is not out of the picture

Gold aims for $3,500/ounce

According to Kitco, gold is still a safe haven asset favored by investors in the context of increasing economic and geopolitical instability. For many analysts, gold reaching $3,000/ounce is just a matter of time, or even a small milestone in a larger rally.

In the latest report, Bank of America (BoA) said that if investment demand increases by 10%, gold prices could completely reach 3,500 USD/ounce. This is not a far-fetched prospect, especially when capital flows from ETFs have just begun to return, still much lower than the peak in 2020.

China continues to be an important driver for gold prices. Last weekend, the Chinese government launched a pilot program, allowing the country's top 10 insurance companies - including its two largest - to invest up to 1% of their assets in gold. According to the BoA, this could help the gold market receive an additional $28 billion, equivalent to about 300 tons of gold, accounting for 6.5% of annual physical gold demand.

In addition, another factor that cannot be ignored is the unpredictability in the policies of US President Donald Trump. This could lead central banks to continue to increase their gold reserves in their foreign exchange reserves.

With such strong supporting factors, it is difficult to be optimistic about the prospects of gold and silver in the long term.

Silver still cannot keep up with gold

In contrast to gold, silver is still a challenging asset to trade. Despite positive supporting factors, silver prices have not increased as strongly as gold. Silver is also volatile twice as much as gold, making it more unpredictable.

This volatility was clearly shown last weekend when silver prices surpassed the resistance level of 33 USD/ounce and skyrocketed to 34 USD/ounce. However, this increase quickly attracted strong selling pressure, causing silver prices to turn down more than 4%, closing the session at 32.67 USD/ounce.

Although the sell-off is disappointing, many experts still recommend that investors focus on the long-term picture. The demand for silver continues to outperform supply, leaving many analysts optimistic that silver will soon have the momentum to break out.

"We believe that silver is in a very strong growth period, creating the most attractive investment opportunity in the current commodity market," said Ghali.

He said the main reason was that the amount of silver reserves in London had decreased rapidly in recent times, while the supply gradually shifted to the US. Notably, the US is a major silver consumer, and the silver shortage has lasted for the past four years.

Ghali emphasized: "I do not think that the available silver will return to the market at the current price. Silver prices need to increase to stimulate supply from unpopular channels"

Previously, in January 2025, Ghali warned that silver prices would be affected due to concerns about global tariffs on precious metals.

With these factors, TD Securities assesses that silver will "catch up" with the strong increase of gold last year, becoming a promising commodity investment portfolio in the coming time.