Gold and Silver Drop as Strong Dollar Whacks Post-Fed Rebound in Stocks and Bonds

AI desk brief

Gold and silver fell in London as the dollar hit a late-July high and 10-year Treasury yields jumped back above 5.00% after the Fed’s 25bp hike, reversing part of Wednesday’s rebound from five-week lows. Spot gold ended flat on the week at $4,351/oz in London, while silver still held a near-$2 weekly gain at $66.30/oz.

The stronger dollar meant gold still rose 0.5% in sterling and euro terms, highlighting the FX translation effect even as the metal slipped in USD terms. On the physical side, Shanghai gold fixed at ¥947/g, narrowing the premium to $13/oz from $20 and implying a strong import incentive, while India stayed at a $60/oz discount as weak retail and jewellery demand persisted ahead of festival season.