Gold and Silver Under Selling Pressure: Interest Rate Expectations Have Been Influential

Increase in Selling Pressure on Gold and Silver

In markets experiencing significant volatility, gold and silver, among other precious metals, showed a very sensitive trend to monetary policy signals coming from the U.S. in the completed week. The rise in the dollar index and the weakening of interest rate cut expectations were among the main reasons for the increasing selling pressure on these precious metals.

Weakening of Interest Rate Cut Expectations

Recently, the hawkish stance of Fed members negatively impacted investors. Particularly, the higher-than-expected non-farm payrolls in the U.S. in October diminished the likelihood of the Fed making an interest rate cut in December. This situation created significant selling pressure in precious metals, which are viewed as safe havens, and the week ended with a negative trend.

Risk Appetite in Markets and Recovery Efforts

On the last trading day of the week, Williams' dovish-toned statements provided some support to risk appetite in the markets. Analysts stated that, in light of these developments, previously depreciated precious metals managed to recover some of their losses on the last trading day of the week. However, the overall volatility in precious metals requires caution from investors.

General Overview of Precious Metals

Throughout the week, the changes in precious metals on an ounce basis occurred as follows:

• Platinum decreased by 1.8%,


• Silver by 1.3%,


• Palladium by 0.8%,


• Gold by 0.5%.

The uncertainties in the markets and changes in monetary policies may lead to significant adjustments in investors' strategies. Whether this pressure on precious metals will continue in the upcoming periods will be a topic that needs to be closely monitored.