Gold and silver prices are entering a correction phase after a series of strong increases, but many experts believe that the long-term trend of precious metals has not changed in the context of prolonged inflationary pressure, increased global public debt and continued high demand for gold reserves.
In a newly released analysis report, Mr. Paul Wong – Managing Partner and market strategist at Sprott Inc said that the current correction and accumulation phase of gold and silver have not changed the long-term upward outlook.
According to him, although gold prices have been flat since the sell-off in mid-March, futures contracts have weakened, and ETFs have recorded capital withdrawals, many central banks – including China – are still seeing price drops as opportunities to increase accumulation.
Although the market still has many geopolitical and macroeconomic fluctuations, the current developments of gold are more suitable for the accumulation phase than the prolonged weakening," Mr. Wong said.
According to Sprott experts, inflationary pressure in many major economies remains high while bond yields rise sharply, causing investors to continue to reassess the role of risk hedging assets.
Mr. Wong said that US PCE inflation has been maintained above the US Federal Reserve (Fed) target of 2% for many years and there are currently no signs of a sharp decrease.
In the short term, gold is still under pressure from expectations of high interest rates and a stronger USD. However, in the long term, many supporting factors are still maintained, especially the demand for gold from central banks.
According to Sprott, central banks net bought about 244 tons of gold in Q1/2026, higher than the average of recent years. These purchases usually take place during the price adjustment period, contributing to creating support for the gold market.
On the supply side, gold mining output growth continues to be limited while official demand remains stable, making the physical gold supply not too abundant.
Not only optimistic about gold, Mr. Wong also positively assessed silver as the metal market continues to record supply shortages.
According to the World Silver Survey 2026 report of the Silver Institute, the silver market has been in continuous shortage since 2021, with a cumulative shortage of about 762 million ounces in the past six years.
Behind the short-term fluctuations, the silver market is facing limited supply while industrial and investment demand continues to increase. This may support price prospects in the near future," Mr. Wong said.
In general, although gold and silver may still fluctuate strongly in the short term due to the impact of interest rates and the USD, many experts believe that the foundational factors supporting precious metals remain intact in the long term.
