Gold, Silver May Fall Further as Funds Shift to AI IPOs, Nasdaq

Gold and silver prices could extend their decline as money flows into artificial intelligence initial public offerings and the Nasdaq, draining liquidity from traditional alternative assets such as precious metals and Bitcoin.

Forbes contributor Clem Chambers wrote on June 16 that the outlook for gold and silver "does not look good." He said he had ridden the earlier rally in both metals and sold near the peak. After reviewing the latest charts, he concluded that downside pressure could persist.

Chambers said gold's chart resembles a classic bubble-collapse pattern. Prices could fall further before the decline runs its course, he wrote, adding that confirming a bottom would require several months of stable trading.

He also took a negative view on silver, describing it as a highly volatile precious metal that is heavily influenced by retail investor flows. Without a special catalyst, silver could drop to $40 to $50, he said.

Chambers said gold and silver would need a clear rebound signal on the charts before turning bullish again. "I'll wait until the charts clearly show a trend reversal," he wrote.

He also cited a recent shift in market liquidity toward AI IPOs and the Nasdaq as a factor weighing on gold and silver. If large sums keep flowing into high-growth technology stocks and new listings, money could also leave alternative assets such as gold, silver and Bitcoin in the short term.

Still, he said the pullback could create a buying opportunity later. Gold and silver may struggle to stage an immediate rebound, but investment opportunities could reemerge after a sufficient correction and a period of stability.

Markets have recently been supported by expectations for a US-Iran agreement, lower oil prices and strength in technology shares following SpaceX's listing. That could further weaken safe-haven demand for precious metals and keep money moving toward growth themes tied to AI, space and the Nasdaq.