Precious metals fall 1.9%-4.3% despite lower oil prices, pressured by Fed hike fears and broader market re-risking.
Gold and silver extended losses, dropping 1.9% and 4.3% respectively, nearing war-time lows despite a 3.5% decline in oil prices. The move reflects broader market re-risking, including a pullback in high-flying chip stocks and the Nasdaq, dragging precious metals lower.
Earlier in the conflict, gold reserves were sold to offset oil import costs, with Turkey offloading $120 billion. While oil’s retreat eases that pressure, metals remain vulnerable to Fed policy shifts. This week’s CPI report could fuel rate hike expectations if inflation prints hot, strengthening the USD and weighing on gold and silver.
Technical trends show a series of lower highs since January’s peak, reinforcing bearish momentum. An end to the war or dovish Fed signals could reverse the trend, but near-term risks dominate.