Gold and silver continue to face pressure from the energy crisis, persistent inflation and surging bond yields. Yet delegates at the 2026 London Bullion Market Association Global Precious Metals Conference remained firmly bullish about the longer term outlook for both metals.
Conference sentiment suggested that the fundamental case for gold is widening. Central banks are diversifying reserves, geopolitical fragmentation is reshaping the global monetary system, and rising sovereign debt is raising questions about government bonds as traditional safe haven assets.
According to the conference’s annual price survey, delegates expect gold to trade near $5,013.30 an ounce by this time next year. That would represent a gain of roughly 20% from current levels.
Spot gold last traded at $4,163.30 an ounce, up 0.57% on the day. The latest bullish projection follows a forecast from the 2025 conference that missed its target, when delegates expected gold to reach about $4,980.30 an ounce.
Gold has struggled during 2026 as the war between the U.S. and Iran pushed oil prices higher. The resulting inflation pressure has forced central banks to retain tightening biases, while rising interest rate expectations pushed long dated bond yields to their highest levels in roughly 20 years.
Throughout the two day conference, speakers repeatedly argued that forces traditionally considered negative for gold have become more complicated. Higher bond yields increase the opportunity cost of holding gold, which does not generate a yield.
At the same time, rising sovereign debt and deteriorating fiscal positions are pushing term premia higher. Those developments are also raising questions about the longer term reliability of government debt, according to conference participants.
“I think, in a way, gold is sending us a message that maybe the global debt is reaching an inflection point where the supply of paper may probably overwhelm the demand,” said Vikram Dhawan, Head of Commodities and Fund Manager at Nippon India Mutual Fund during a panel discussion.
Central bank demand also emerged as a major conference theme. Reserve managers increasingly view gold as more than an inflation hedge or protection against geopolitical turmoil.
UBS Asset Management’s latest Reserve Management Survey found that 65% of respondents identified diversification as the primary reason for holding gold. Gold was also among the leading assets that central banks expect to add to their reserves during the next 12 months.
Several central bankers emphasized gold’s status as an asset that is no one else’s liability. Speakers said geopolitical fragmentation, sanctions and concerns about sovereign credit risk have increased the appeal of an asset without counterparty or default risk.
Persistent fiscal deficits and rising government debt are also supporting the “debasement trade,” according to analysts at the conference. Investors are seeking protection against the longer term erosion of purchasing power in fiat currencies.
Delegates expressed an even more aggressive outlook for silver, forecasting that prices will climb to $94.70 an ounce over the next 12 months. That projection represents a gain of more than 54% from current levels.
Spot silver last traded at $61.23 an ounce, up 0.50% on the day. The metal is already trading above the $59.10 forecast made at the 2025 conference, despite having suffered a significant correction from its highs earlier this year.
Elevated prices are pushing industrial users to reduce silver consumption where possible, but conference participants said structural demand remains healthy. Photovoltaic manufacturers continue to use less silver as costs rise, although speakers said the metal remains difficult to replace completely in solar technology.
Growth in artificial intelligence infrastructure, electric vehicles and broader electrification is expected to generate longer term demand for silver and gold. Physical investment demand has also remained resilient, with dealers reporting periods earlier this year when tight inventories and strong buying made meeting demand difficult.
Delegates nevertheless expect volatility to continue as precious metals compete with elevated interest rates and bond yields. Their longer term case rests on central bank demand, sovereign debt concerns, geopolitical uncertainty and expanding industrial consumption supporting higher prices.