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Gold, Silver Prices Crash: US Yields, Stronger Dollar Fuel Sell-Off
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CNBC TV18•29-09-2026, 12:01
Gold, Silver Prices Crash: US Yields, Stronger Dollar Fuel Sell-Off
- •Gold and silver prices plunged by as much as 6% recently.
- •The sharp sell-off is attributed to rising US yields and a stronger dollar.
- •Fresh rate hike bets are also contributing to the pressure on precious metals.
- •Upcoming US inflation and jobs data could potentially influence the market trend.
Key Questions Answered
Gold and silver prices have plunged by as much as 6% due to rising US bond yields, a stronger US dollar, and fresh expectations of interest rate hikes by the Federal Reserve. Because precious metals do not yield interest, these factors drive investors toward stable-income alternatives.
A stronger dollar and rising US Treasury yields increase the opportunity cost of holding non-yielding assets like gold and silver. When interest rates are expected to stay high, investors shift their capital toward fixed-income options, putting downward pressure on metal prices.
Upcoming US inflation and jobs data are expected to play a critical role in determining whether these market trends will reverse or if the precious metals will remain under pressure.
