While gold’s rebound was short-lived, primarily due to investors reassessing the outlook for U.S. interest rates following last week’s hawkish Federal Reserve meeting, silver has struggled even more than the bullion, said veteran commodities analyst and Head of Commodity Strategy for Saxo Bank, Ole Hansen.
“The combination of higher bond yields, a firmer dollar, and expectations that policy rates may remain elevated for longer continues to challenge investor appetite for non-yielding assets,” Hansen wrote in a post on Substack.
However, while gold continues to benefit from some safe-haven demand, silver has come under added pressure due to concerns about slowing global growth and weaker demand for industrial metals, Hansen noted.
The gold-silver ratio has risen to about 66, its highest level in three months, indicating that silver is facing greater pressure from economic headwinds.
At the time of writing, spot gold was trading 1.7% lower at $4,120.84 per ounce, while spot silver slumped 4.7% to roughly $62 an ounce, testing its lowest levels in three months. Silver futures for August 2026 deliveries crashed 5.3% while gold contracts expiring in August fell 1.5%. Hansen sees $4,000-$4,100 per ounce as crucial technical levels for gold.
Deutsche Bank also trimmed its outlook for gold prices, citing the Fed’s hawkish stance and a lack of traditional investment demand, according to a report. Analyst Michael Hsueh expects gold to reach $4,800 per ounce in the fourth quarter under a scenario where the Fed keeps rates unchanged. However, he warned that gold could fall to $3,800 if markets begin pricing in three to four additional rate hikes.
Investment demand remains weak. ETF outflows have continued, and futures market participation is near a 17-year low. Demand from key markets has also softened, with China’s gold premium turning into a discount and India’s recent increase in gold import taxes expected to curb buying, the bank added.
Retail sentiment for iShares Silver Trust (SLV) on Stocktwits remained in the neutral territory over the past 24 hours, while sentiment around the SPDR Gold Shares ETF (GLD) trended in the ‘bearish’ zone.
SLV is down more than 10% so far this year, while GLD has fallen about 4.7%. The two ETFs have underperformed compared to the broader equity markets. The SPDR S&P 500 ETF Trust (SPY) has gained more than 8% this year.
Read also: Tesla Bull Case ‘Unraveling in Real Time’? Analyst Says SpaceX Tie-Up Could Leave Trillions Of FSD, Optimus Value ‘On the Table’
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
