Bullish Conditions Align for Gold and Silver

Citadel Securities analyst Scott Rubner believes that five major catalytic factors are resonating in the precious metals market, creating a rare upward window for gold and silver.

Rubner points out that CTA funds' net short positions have the potential for a short squeeze, with options signals turning bullish, central bank gold purchases continuing to strengthen, and retail capital bringing additional buying power.

The analyst recommends a structural allocation to gold for the first time in 2026, while also being optimistic about silver's upside elasticity.

Rubner focuses on the SPDR Gold ETF (GLD) and iShares Silver Trust ETF (SLV), noting that GLD implied volatility has started to rise from low levels, with the skew between puts and calls reversing.

The analyst believes that a mismatch between current fund positions and the improving macro environment could trigger systematic buying, resulting in new demand increments.