Gold and silver prices are struggling now, but a much higher long-term base is building - BMO Capital Markets - Kitco

BMO Capital Markets suggests that while gold and silver prices are currently under pressure, the metals may be building a higher long-term base. According to Kitco's report, the bank's view frames the present weakness as a phase within a broader structural shift rather than a reversal of the metals' longer-term trajectory.

For investors, the distinction matters. Short-term price action in precious metals is often driven by shifting rate expectations, currency moves, and risk sentiment. A "base-building" argument implies that underlying demand—whether from central banks, institutional allocations, or physical buyers—is establishing firmer support levels over time, even as spot prices fluctuate.

What to watch: whether gold and silver hold key support zones during periods of dollar strength, how central bank buying trends evolve, and whether ETF flows stabilize after recent outflows. These indicators will help clarify whether BMO's thesis of a rising long-term floor is gaining traction or remains premature.