
Gold, silver slammed as hawkish Fed repricing reignites dollar upside
Gold and silver had held up surprisingly well against surging US yields. Wednesday’s DXY breakout may have changed that equation.
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Gold and silver had held up surprisingly well against surging US yields. Wednesday’s DXY breakout may have changed that equation.

A hawkish Fed, surging short-dated Treasury yields and a firmer dollar failed to deliver the kind of damage usually seen in precious metals.

Gold and silver are feeling the full force of surging US yields, but the dollar’s failure to join in may be saving them from an absolute drubbing.

Gold and silver remain unusually sensitive to US dollar direction, with US inflation data and elevated risk of disorderly carry trade unwinds in focus for traders over the remainder of the week.

The US dollar was hammered after Treasury moved to support longer-dated bonds, sending gold and silver sharply higher. It may be premature to declare the debasement trade back, but the embers are glowing.

Precious metals are rangebound, the dollar is hanging tough and traditional macro signals have turned messy. The FOMC minutes may help determine which side breaks first.

Precious metals have exploded higher over the past week, with gold and silver delivering moves rarely seen over comparable periods. Technical breakouts and softer macro headwinds are now working in the bulls’ favour.

Gold, Silver Price Forecast: Gold and silver remain above major long-term support ahead of the Fed decision. Explore key technical levels, the DXY outlook, and bullish and bearish scenarios.