Silver Falls 6%, Gold Also Dips Amid Rate Hike Expectations, Rising Oil Prices
Spot gold held near $4,320 an ounce as traders priced in a 70% chance of a Federal Reserve rate hike.
- Gold remained steady near US$4,320 an ounce on Friday as investors weighed rising inflation ahead of the Federal Reserve meeting on September 15-16.
- Thursday data showed the US producer price index rose 0.4 per cent in August, the most since May, while investors await the consumer price index due later Friday.
- Swaps traders currently price in a roughly 70 per cent chance of a rate hike, while bond yields surged following Treasury Department buyback operations, complicating Treasury Secretary Scott Bessent's intervention.
- Benchmark Brent crude traded near US$108 a barrel as hostilities escalated in the Middle EastPublished Fri, with conflict between Iran pressuring precious metal prices.
- Silver slipped 0.1 per cent to US$63.58 an ounce, while Platinum remained steady as high yields pressure non-interest-bearing bullion across the market.
12 Articles
12 Articles
GCAP GOLD assesses that gold prices are still in a consolidation phase, facing selling pressure from strong US employment figures, which support expectations of a Fed interest rate hike in mid-September. The company advises investors to adopt a strategy of waiting for a base to form at support levels of $4,330-$4,370, while closely monitoring US inflation figures at the end of the week, which will determine the direction of prices in the coming …
Gold Is Falling, but Silver Has the Bigger Problem as Oil Drives Yields Higher - ActionForex
Gold and Silver are both falling as oil-driven yields lift Fed hike expectations, but Silver is losing twice—once through the same rate pressure hitting Gold, and again through its industrial-demand exposure—a divergence the Gold/Silver ratio has just confirmed with a decisive breakout.
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