The End of the Gold Rush? Global Demand for Precious Metals Is Changing

cryptonews.ruPublished on 2026-07-30Last updated on 2026-07-30

Abstract

Global demand for precious metals is shifting. Gold started 2026 strongly, surpassing $5,500 per ounce, but experienced a sharp correction to below $4,000 by mid-year. It now behaves more like a risk asset, sensitive to interest rate changes, rather than a traditional safe haven. However, Chinese central bank purchases continue to provide fundamental support, with its gold reserves reaching record highs and approaching 10% of its total forex reserves. Analysts from J.P. Morgan forecast a year-end recovery to the $4,350-$4,650 range. Silver followed a more volatile path, soaring to $120 per ounce early in the year before halving in value, though current prices remain 70% above last year's levels. The industrial sector, particularly solar panel manufacturers (accounting for a fifth of global demand), is responding to high prices and supply deficits by increasing recycling and reducing metal usage per unit. Analysts note the supply deficit is easing due to increased mining investment, with WisdomTree projecting a gradual rise to $70 per ounce by Q2 2027, supported by expected gains in gold. In conclusion, the precious metals market demands in-depth analysis, as prices are driven by a complex mix of industrial demand and central bank policies. Investors are advised to rely on verified analysis, diversify risks, and make decisions based on objective market facts.

The markets for precious metals and alternative investments are undergoing a transformation that requires investors to have a cool head and deep analysis. Specifically for the readers of Happy Coin News, we have prepared a review of the current situation based on fresh data to understand which assets are retaining their value in a highly volatile environment.

The beginning of 2026 was incredibly successful for gold: quotes soared above $5500 per ounce. However, by the end of June, the metal experienced a sharp correction, falling below the psychologically important level of $4000. Such dynamics in such a short period of time were last observed only in 1979–1980. Today, gold is trading more like a risky asset, acutely reacting to changes in real interest rates, rather than as a traditional "safe haven."

At the same time, fundamental support for the metal continues to be provided by institutional players in the Asian market. The People's Bank of China is aggressively accumulating reserves: in June 2026 alone, the Chinese regulator purchased 14.93 tons of gold, increasing its holdings to record levels, which now account for nearly 10% of the country's total foreign exchange reserves.

Based on the ongoing activity of central banks and global macroeconomic uncertainty, analysts at J.P. Morgan Wealth Management forecast that by the end of the current year, the price of gold will recover and consolidate in the range of $4350 to $4650 per ounce.

Silver, traditionally following in gold's wake, demonstrated even more dizzying dynamics. In the first weeks of the year, its prices reached $120 per ounce, after which they roughly halved, although current levels are still 70% higher than the figures for the same period last year.

Such a sharp decline and deficit forced industrial consumers to actively adopt recycling technologies. This is especially relevant for the solar panel production sector, which accounts for one-fifth of the entire global demand for silver, where manufacturers are forced to reduce the amount of metal used per element. Despite this, expert sentiment remains moderately positive. Nitesh Shah, Head of Commodity Market Research at WisdomTree, noted that the supply deficit for silver is gradually decreasing due to increased capital investment in mining, but the asset retains potential. According to WisdomTree's forecast, by the second quarter of 2027, silver could gradually rise to $70 per ounce, facilitated by the expected increase in the price of gold.

As a conclusion, it is worth noting that the modern market does not forgive a superficial approach and requires investors to be extremely well-informed. In the case of precious metals, where prices are determined by a complex balance of industrial demand and regulator policies, the key to success remains a deep analysis of fundamental indicators. Rely on verified analysis, diversify risks, and make financial decisions based solely on objective market facts.

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Related Questions

QWhat were the key price movements for gold in the first half of 2026 according to the article?

AGold started 2026 strongly, with prices soaring above $5,500 per ounce. However, by the end of June, it experienced a sharp correction, falling below the psychologically important level of $4,000 per ounce.

QWhat role is the People's Bank of China currently playing in the gold market?

AThe People's Bank of China is providing fundamental support for gold through aggressive reserve accumulation. In June 2026 alone, it purchased 14.93 tonnes of gold, increasing its reserves to a record high of nearly 10% of the country's total foreign exchange reserves.

QWhat is J.P. Morgan Wealth Management's year-end price forecast for gold?

AJ.P. Morgan Wealth Management analysts forecast that the price of gold will recover and consolidate within a range of $4,350 to $4,650 per ounce by the end of the current year.

QHow has the price of silver performed compared to gold, and what is a key factor affecting its industrial demand?

ASilver showed even more dizzying volatility than gold. Its price reached around $120 per ounce early in the year before roughly halving. A key factor affecting its industrial demand, particularly from the solar panel sector which accounts for a fifth of global demand, is that manufacturers are forced to reduce the amount of silver used per panel element.

QWhat is WisdomTree's price prediction for silver and the reasoning behind it?

AWisdomTree predicts that silver could gradually rise to $70 per ounce by the second quarter of 2027. This potential growth is expected to be supported by the anticipated increase in the price of gold, alongside a gradual easing of supply deficits due to rising capital investment in mining.

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