The precious metals market is experiencing a significant sell-off, with gold plummeting nearly 10% this week, marking its worst performance since 1983. Silver has also faced volatility, dropping over 10% before finding support near its 200-day moving average. This downturn is occurring amid heightened geopolitical tensions and rising stagflation risks, which typically bolster demand for safe-haven assets like gold.

The current market dynamics are largely influenced by shifting expectations regarding Federal Reserve policy, with rate cut timelines being pushed back to autumn. This has strengthened the U.S. dollar and Treasury yields, while surging oil prices suggest central banks may remain cautious about easing monetary policy, further complicating the outlook for precious metals. Silver’s industrial demand makes it particularly vulnerable to economic slowdowns tied to oil price shocks.

Investors should closely monitor support levels for gold and silver, as rebounds could signal potential price recoveries. For a deeper analysis, I recommend checking out the full story.

Source: xtb.com