WS #15474
Precious metals are experiencing a sharp divergence driven by the surge in real yields. Silver has fallen below $60 as high US yields, a stronger dollar, and seasonal liquidity slumps weigh on the metal. In contrast, gold ETF holdings have hit a record high despite an 8.5% slide in the spot price, indicating strong underlying investment demand and a flight to safety that is decoupling from short-term price action. This suggests that while the dollar is currently suppressing silver, the long-term hedge against inflation remains attractive for gold.
Precious Metals and Commodities
Precious metals are experiencing a sharp divergence driven by the surge in real yields. Silver has fallen below $60 as high US yields, a stronger dollar, and seasonal liquidity slumps weigh on the metal. In contrast, gold ETF holdings have hit a record high despite an 8.5% slide in the spot price, indicating strong underlying investment demand and a flight to safety that is decoupling from short-term price action. This suggests that while the dollar is currently suppressing silver, the long-term hedge against inflation remains attractive for gold.