Market Update: Precious Metals on Sale - Holland Gold

AI desk brief

Silver is testing the $50/oz threshold again while gold briefly dipped below $4,000/oz, even as the dollar weakened and long-dated rates eased. The piece argues the usual gold/silver sensitivity to lower yields and a softer USD has broken down, pointing instead to a liquidity squeeze that is leaving precious metals under pressure; silver has fallen back below its previous July low and is now down 26% YTD in dollar terms, while gold is -6.5% YTD in USD and -1.5% in EUR.

The article also highlights a more hawkish Fed backdrop: rates were left unchanged on 28 October, with CME FedWatch assigning a 79% probability of a 25 bp hike at the 9 December meeting. On the supply/flow side, the Central Bank of Russia sold 6t of gold in September, its tenth straight monthly sale, taking cumulative sales since December to 62t and cutting reserves to 2,260t, the lowest since 2019.