Why Are Gold & Silver Falling? Fed Rate & Oil Fears - SD Bullion

AI desk brief

Gold fell about 3.5% to $3,994/oz and silver nearly 5% to $53.70/oz, with both metals trading below their 200-day moving averages. The gold-to-silver ratio rose to roughly 74, and gold finished the week about $500 below its 200-day average, marking its largest weekly decline in around four months.

The selloff is framed as a rates and macro shock: rising Treasury yields, firmer inflation concerns, and expectations the Fed may keep policy tighter for longer or even hike again, while a stronger U.S. dollar also weighed on non-yielding metals. Brent crude near $117/bbl, driven by Middle East tensions, is cited as an inflationary headwind that could keep real rates elevated in the near term.

Offsetting the price weakness, the piece highlights potential physical demand support from Asia, including a reported Japanese life insurer plan to allocate about 1% of AUM to gold and the possibility of roughly 209 million ounces of Indian silver imports over six months. Jupiter Asset Management is quoted as seeing long-term support from central bank balance-sheet expansion, deficits, currency debasement, and de-dollarization, even if short-term positioning remains under pressure.