🚨 Gold & Silver Correction Explained 🪙📉
Over the past weeks, safe-haven demand + easing expectations drove a rally in precious metals. But recent U.S. macro developments sparked sharp corrections.
Key drivers:
Interest-rate expectations: Slower inflation, but still elevated → “higher for longer” rates push up opportunity cost, pressuring non-yielding gold & silver.
Rising real yields: U.S. Treasuries look more attractive → capital shifts away from metals.
Stronger USD: Boosted by yields + resilient U.S. data → reduces foreign buying power.
Futures dynamics: Producers hedging + cautious buyers → momentum selling accelerates declines.
Silver volatility: Industrial demand adds extra swings vs. gold.
Bottom line:
Not a collapse — just a repricing based on U.S. inflation, yields, the dollar, and futures positioning. Long-term fundamentals for gold & silver remain intact.
