Silver Falls Thru' 1980 and 2011 Peak at $50 as Gold Sinks

AI desk brief

Gold and silver sold off sharply even as bond yields and rate expectations eased after the Fed, ECB and BoJ all left policy unchanged: spot gold fell 1.4% on the week to as low as $3,937/oz, while silver dropped 8.0% and broke below the prior 1980 and 2011 peak of $50/oz. The London LBMA Gold Price fixed around $3,981/oz, its lowest since early July, while the gold/silver ratio pushed above 79, reflecting silver’s underperformance.

Metals Focus says weak physical investment, elevated prices, thrifting and substitution are narrowing the silver deficit, with a move back to surplus projected for next year and less chance of another physical squeeze. The note also flags a possible silver outperformance later if markets scale back expectations for aggressive monetary tightening in 2027, but near term the tone is bearish for both metals as gold has now lost 5.6% in October.