Goldman Sachs says a surge of client call-option buying targeting $90 silver could accelerate gold's rally, with the bank holding a $4,900-$5,400 end-2026 gold target. Gold itself trades near record highs at $4,679.26, though technical indicators now flag overbought extremes and a rising risk of a pullback.
Goldman Sachs is flagging a wave of client activity in the silver options market that it believes could pour fuel on an already scorching gold rally. The bank reports a notable uptick in call option buying from clients placing bets that silver will hit $90 per ounce in the coming months, a level the metal briefly touched earlier this year before pulling back.
The silver-gold feedback loop
Silver is gold's more volatile sibling, and money flooding into silver call options can create a self-reinforcing cycle: market makers who sell those calls hedge by buying the metal, which pushes prices higher and makes the calls more valuable, drawing in more buyers. Goldman says this options-driven momentum tends to spill into gold too, since the two metals typically move in correlation.
The bank maintains an end-of-2026 gold target of $4,900 to $5,400 per ounce. It projects average silver prices of $85 to $100 for the year. Silver was trading around $69.40 per ounce as of August 21, 2026, up more than 78% year-over-year, though it briefly touched $90 to $91 in January and February before shedding more than 20% of its value.
Citi backs a similar call
Citi echoed the bullish view, reiterating a near-term silver target of $75 and a 6-to-12-month target of $90 in an August 12 report. The bullish case also rests on central bank gold purchases that accelerated after Russian reserves were frozen in 2022, plus steady ETF inflows into gold and silver products. Silver also carries industrial demand from solar panels, electronics and electric-vehicle components, while mine supply has struggled to keep pace.
Gold flashes overbought on the charts
Gold itself is showing signs of stretching too far, too fast. The metal's five-hour chart put its last close at $4,679.26, just below its recent peak of $4,690.11, capping a parabolic run. Price sits 3.45% above its 20-period moving average, with RSI at 75.25 and MFI at 90.13 — both squarely in overbought territory even as the trend stays bullish.
Traders chasing entries at these levels face a "no-trade" band between $4,556 and $4,680, where risk/reward turns unfavorable for fresh positions in either direction. A pullback toward $4,556 offers bulls a better entry, while a failed push above $4,690 risks trapping late buyers.
Sources: Crypto Briefing, Investing.com
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