JUST IN: Gold and silver are getting hit hard today.
$XAU has dropped to a more than two-month low, with spot gold falling around 2.1% to about $4,055 per ounce.
$XAG is taking an even bigger hit, falling roughly 4.6%.
So what’s behind the sudden pressure?
Oil prices are surging, bringing fresh inflation fears. That is pushing markets to expect U.S. interest rates to stay higher for longer, which is putting pressure on non-yielding assets like gold and silver.
The big question now:
Is this just a healthy correction after the huge rally, or is the metals trade entering a deeper selloff?
For now, volatility is clearly back.
Gold bulls are under pressure. Silver is moving even faster.
And this is one market where the next few sessions could get very interesting.
$XAU has dropped to a more than two-month low, with spot gold falling around 2.1% to about $4,055 per ounce.
$XAG is taking an even bigger hit, falling roughly 4.6%.
So what’s behind the sudden pressure?
Oil prices are surging, bringing fresh inflation fears. That is pushing markets to expect U.S. interest rates to stay higher for longer, which is putting pressure on non-yielding assets like gold and silver.
The big question now:
Is this just a healthy correction after the huge rally, or is the metals trade entering a deeper selloff?
For now, volatility is clearly back.
Gold bulls are under pressure. Silver is moving even faster.
And this is one market where the next few sessions could get very interesting.
