Home / Business and Economy / Gold Dives 5%, Silver Plummets 9% on Fed Jitters
Gold Dives 5%, Silver Plummets 9% on Fed Jitters
7 Jun
Summary
- Gold futures fell 5% to $4,365/oz, silver down nearly 9% to $69.10/oz globally.
- Rising crude oil prices diverted attention from safe-haven assets like gold.
- Stronger US economic data reinforced expectations for higher-for-longer interest rates.
Global gold futures saw a sharp decline of 5%, closing the week at $4,365 per ounce, while silver futures plummeted nearly 9% to $69.10 per ounce. Analysts attribute this significant sell-off in precious metals to a confluence of factors, including increased market attention being drawn away from safe-haven assets by rising crude oil prices.
Further pressure on bullion came from stronger-than-expected US economic indicators, such as PMI and labor market data. These releases reinforced market expectations that interest rates would remain elevated for an extended period. A firm US dollar and outflows from exchange-traded funds also weighed heavily on gold and silver prices.
Developments in West Asia and upcoming economic data releases from China, the US, and India are expected to keep gold prices sensitive. The European Central Bank's monetary policy decision will also be closely watched for its potential impact on commodities. Market sentiment for precious metals currently appears corrective, with potential downside if international prices remain below the $4,400-$4,500 range.
