Gold, Silver Jump After Fed Rate Rise as Oil Sinks, UK Backs Banknotes with Debt

AI desk brief

Gold and silver rebounded sharply in London after yesterday’s Fed-driven selloff, with gold up as much as 3.4% to $4,380/oz and silver topping $66, even as the dollar stayed near 6-week highs. The move tracked a slide in oil and a sharp drop in long-end government yields: UK 30-year gilt yields fell 13.5bp after the Bank of England slowed QT and said £120bn of long-dated gilts will no longer be unwound for monetary policy purposes.

The backdrop remains hawkish at the front end, with the Fed projecting another rate hike before year-end, but the article argues gold is already recovering as long-term borrowing costs ease. FX weakness in sterling and the euro also lifted local-currency gold to 9-session highs at £3,273 and €3,810/oz.