Bloomberg Analyst Warns: Gold and Silver Prices May Have Already Peaked in 2026

Bloomberg Intelligence analyst Mike McGlone, known for his macro and commodity analysis, tweeted on June 1 that energy and precious metals prices may have peaked. He noted that precious metals are the only major commodity sector to reach a new high this year, while energy has been a “notable dud.”

McGlone’s attached chart compares the Bloomberg Energy Spot Subindex to the Bloomberg Commodity All Metals Total Return over the past 25 years. His conclusion: gold and silver may have reached “exorbitant plateaus,” and energy likely topped after retesting resistance first set in 2005.

Let’s break down the tweet and chart, then offer our opinion.

*   Analyzing McGlone’s Tweet and Chart
*   Our Opinion – Is the Peak Really In?

• FAQs

Analyzing McGlone’s Tweet and Chart

McGlone starts by pointing out that the Bloomberg Energy Spot Subindex rose 64% to its 2026 high on May 4, but that high retested a resistance level originally set in 2005. In his view, that resistance has held, suggesting energy prices may have peaked. He sees “plenty of reversion room” unless the long‑term pattern of lower highs and lower lows since 2008 has changed. He believes that pattern is unlikely to break.

The chart (attached) normalizes prices as of December 31, 1999. It shows the Bloomberg Energy Spot Subindex (green line) and the Bloomberg Energy Subindex Total Return (orange line) both peaking around 2005‑2008, then making lower highs in 2012, 2018, and now in 2026.

The Bloomberg Commodity All Metals Total Return (blue line) – which includes gold and silver – has performed much better over the same period, rising from near 100 in 1999 to roughly 400‑500 in recent years.

However, McGlone notes that even metals may have reached “exorbitant plateaus.”

Source: X/@mikemcglone11

He acknowledges that the closing of the Strait of Hormuz (due to Iran tensions) is a short‑term catalyst that adds fuel to price pressures. But he views this as temporary. The primary long‑term trends, in his view, are rising US energy dominance (the US becoming a net energy exporter) and technology replacing fossil fuels (solar, EVs, efficiency). These forces should eventually push energy prices lower.

For gold and silver, McGlone’s graphic shows that precious metals have outperformed energy commodities. But he warns that the gold price and silver price may have already reached their peaks for this cycle. The pattern of lower highs since 2008 applies to metals as well, though the chart shows metals still near historical highs.

Read also: Silver Price vs. Global Production – Why Miners Can’t Keep Up

Our Opinion – Is the Peak Really In?

Mike McGlone has a respectable track record, but calling a top in gold and silver is always risky. The gold price is up roughly 40% from its 2023 lows, and the silver price more than doubled from its 2022 lows. Both have pulled back in May – gold from near $4,800 to $4,300, silver from $89 to $73. Technically, that looks like a top. However, the fundamental case for higher precious metals remains strong.

Central banks are still buying gold at record rates. In 2025, central bank gold reserves as a percentage of total reserves hit a 32‑year high of 26.6%. Private investor allocations to gold doubled in five years to 2.7% of portfolios – the highest since 1984. These are not signs of a peak; they are signs of ongoing accumulation.

The silver price also benefits from industrial demand. Silver is in its sixth consecutive year of supply deficit. Solar panel manufacturing and EV production continue to expand. Even with a peak in energy commodities, silver’s industrial use is not going away.

McGlone’s “lower highs since 2008” pattern is real. But past patterns do not always repeat. The post‑COVID monetary expansion and the weaponization of the dollar (sanctions, frozen reserves) have fundamentally changed the demand for hard assets. Many investors now view gold and silver as essential hedges against fiat debasement, not just commodities to be traded on technicals.

We think McGlone’s warning is worth considering. The gold price and silver price could consolidate or correct further in the coming months, especially if the Fed remains hawkish and the dollar strengthens. But calling a permanent peak after a 40% correction seems premature. A better view is that gold and silver are in a long‑term bull market with periodic sharp pullbacks. The current levels may offer good entry points for patient investors.

In short, McGlone may be right about the short‑ to medium‑term topping process, but the long‑term trend for precious metals remains upward as long as central banks keep printing and geopolitical tensions persist.

Overall, the gold price and silver price may see further downside in the near term, but long‑term investors should not abandon the asset class. Watch support at $4,200 for gold and $70 for silver.

FAQs

 **What levels to watch for gold and silver❓**

Gold support at $4,200, then $4,000. Silver support at $70, then $68. A break below those could confirm McGlone’s peak call. A hold and rebound would invalidate it.

 **Why is gold so valuable❓**

Gold is valuable because it is scarce, durable, and has been recognized as a store of wealth for thousands of years across different cultures. Unlike fiat currency, gold cannot be printed or inflated, and its industrial use in electronics, aerospace, and green technology adds real demand. Central banks also hold massive gold reserves as a hedge against currency devaluation and geopolitical risk.