Gold and Silver Price Forecast: Silver Lags as Fed Hike Fears Grow - FXEmpire

AI desk brief

Gold and silver remain under pressure as hotter inflation keeps rate-hike risk alive: September PCE rose 0.5% m/m versus 0.3% in August, while core PCE stayed at 3.1% y/y, above the Fed’s 2% target. The article argues higher-for-longer rates are weighing on both metals, with silver hit harder: XAG fell 3.37% Thursday and is down more than 14% in October, versus gold’s nearly 3.8% decline.

Key levels to watch are $3,950 on spot gold and $48-$50 on spot silver. A break below $3,950 could open $3,800 for gold, while silver could extend to $45-$46 if $48-$50 fails; conversely, gold needs a recovery above $4,082/$4,200 to stabilize, and silver above $55 to ease bearish pressure. The gold/silver ratio has moved above 73 and is nearing 80, which the author says could eventually mark a major bottom if it peaks and reverses.