Gold and silver still underweighted

Advertisement/Advertising - This article is distributed on behalf of Osisko Development Corp. and Fury Gold Mines Ltd., with whom SRC swiss resource capital AG has paid IR advisory agreements. Creator: SRC swiss resource capital AG · Author: Ingrid Heinritzi · First published: 27.10.2025, 6:40 p.m. Europe/Berlin

The gold price rally to new all-time highs was impressive. At its recent peak, the gold price was just under 32 percent above its 200-day average. Then there is a tendency for prices to retreat, which can lead to extreme price movements. Incidentally, this is only the third time since 1980 that gold has moved so far above its 200-day average.

Nevertheless, gold and silver are still underweighted, at least according to Ole Hansen of Saxo Bank. The price correction was long overdue. Price increases and decreases are influenced by liquidity. Since liquidity for silver is about nine times lower than for gold, silver has also corrected more sharply. This means that a buying frenzy quickly encounters limited supply, and profit-taking quickly leads to sharp price movements. The US dollar had strengthened, and the Festival of Lights (Diwali) in Asia, which drives gold purchases, was over on October 23. Prior to Diwali, demand for gold was very strong and certainly supported prices. In addition, there were probably three unsuccessful attempts by the gold price to break through the US$4,380 per troy ounce mark. Profit-taking is therefore likely to have come into focus. The overbought situation for both precious metals has ended for now, but the structural price drivers remain in place and gold and silver are still underrepresented in portfolios. The price-driving factors also ensure positive assessments for the gold and silver prices in 2026. It should therefore continue to be worthwhile to invest in gold and gold companies.

Fury Gold Mines - https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ - has a gold and mineral exploration portfolio totaling over 157,000 hectares in Quebec. The company also owns common shares in Dolly Varden Silver Corp. Good drilling results have just been reported from the Sakami gold project in Quebec.

Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ - owns the Cariboo Gold (Canada, 100 percent), San Antonio (Mexico), and Tintic (USA) projects. Production at Cariboo (approximately 190,000 ounces of gold per year over ten years) is scheduled to start in 2027.

Current company information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -).

Sources:

https://www.home.saxo/content/articles/commodities/gold-and-silver-correction-to-test-the-markets-true-strength-22102025

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