Gold and Silver are bouncing back as the selling pressure fades. According to OCBC Bank’s report by Sim Moh Siong and Christopher Wong, this rebound suggests a temporary pause in selling.
The mood is cautious, with expectations for the market to stabilize rather than reverse. Confidence is not fully restored, which could lead to some unpredictable trading soon. By year-end, Gold is expected to reach USD5,600 per ounce, and Silver, USD133 per ounce.
The FXStreet Insights Team
The FXStreet Insights Team includes journalists who report on market trends based on expert opinions. This article has contributions from various commercial organizations and insights from both internal and external analysts. A blend of artificial intelligence and editorial input helped create this content.
Gold’s recent comeback from the $4,700 mark is a positive sign after the sharp sell-off in mid-January 2026. The renewed buying interest indicates that forced selling from margin calls has eased for now. We should prepare for a consolidation phase, as market confidence is still weak.
In this choppy trading environment, there are opportunities to sell options premium. Strategies like iron condors or selling strangles on gold futures are ideal since implied volatility has decreased after January’s spike. The Cboe Gold ETF Volatility Index (GVZ), now around 18, down from 25, reflects this temporary calm.
Market Position Reset
Data from last month confirms a shakeout of positions. Looking at the CFTC reports from late January, we see that hedge funds significantly reduced their net-long positions, marking the largest drop since the third quarter of 2025. This reset makes the market less susceptible to another sudden decline from crowded positions.
Even with short-term caution, the long-term bullish outlook stays strong, supporting our year-end target of $5,600 per ounce. Ongoing inflation, with the last CPI report for January 2026 showing an annual rate of 4.1%, remains a key driver. We should take advantage of any price dips in the upcoming weeks to buy long-dated call options or increase our futures positions.
Silver has performed relatively well during this rebound, with the gold-silver ratio narrowing to 42. While still historically wide compared to under 40 levels in late 2025, this suggests that silver could outperform gold if bullish momentum returns. We may consider increasing our exposure on any dips towards the $110 support level.
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