Sharp Decline in Gold and Silver Prices
Recently, the precious metals market has seen a significant pullback. Spot gold dropped $16 to $4,453 per ounce, while spot silver fell below $79 per ounce with a daily decline of 2.81%. New York silver futures also declined by 2.64%.
Market Analysis
The drop is mainly attributed to shifting expectations around Fed policy. Investors are concerned that a prolonged rate hike cycle could dampen safe-haven demand and put downward pressure on precious metal prices.
Outlook
- Gold and silver prices may continue to trend lower in the short term
- Focus on the upcoming Fed meeting minutes
- Technical analysis shows silver’s support level is near $78.5