Spot precious metals fell sharply, according to Gate data, with spot gold dropping below the $3,900 mark to $3,897.48 per ounce, down 3.08% on the day. Spot silver fell 5.90% intraday to $49.09 per ounce, slipping under $50, while platinum declined 4.22% to $1,425.20 per ounce. External media analysis linked the move to rising expectations that the Federal Reserve could raise rates in December.
The Fed on Wednesday voted 10-2 to keep rates unchanged at 3.75% to 4.00%, though two officials argued for an immediate rate increase. The same analysis said U.S. third-quarter GDP grew 3.4% and the personal consumption expenditures, or PCE, inflation rate reached 3.6%, reinforcing market expectations for a December hike. It also noted that the sell-off in gold and silver was not driven by a stronger dollar or higher Treasury yields, as both the dollar and yields eased on the day. After a sell-off in technology stocks, funds moved into bonds, while the gold-silver ratio rose to 79.4, showing silver weakened more than gold.
Spot gold and silver fell sharply, according to Gate data cited by Odaily.
Spot gold broke below $3,900 and fell to $3,897.48 an ounce, down 3.08% on the day. Spot silver dropped 5.90% intraday to $49.09 an ounce, falling below the $50 mark. Platinum lost 4.22% to $1,425.20 an ounce.
Media analysis ties move to stronger December hike expectations
External media analysis said the Federal Reserve voted 10-2 on Wednesday to keep rates unchanged at 3.75% to 4.00%, though two officials supported an immediate rate increase. U.S. third-quarter GDP grew 3.4%, and the personal consumption expenditures, or PCE, inflation rate reached 3.6%, reinforcing market expectations for a Fed rate hike in December.
Gold and silver fell even as the dollar and Treasury yields eased
The same analysis said the latest sell-off in gold and silver was not driven by a stronger U.S. dollar or rising Treasury yields. Both the dollar and Treasury yields moved lower on the day, while funds shifted into bonds after a sell-off in technology stocks.
Even so, gold and silver fell sharply. The analysis said the market may be going through liquidity-driven selling, with investors liquidating more liquid precious metals holdings to cover losses in other assets.
At the same time, the gold-silver ratio rose to 79.4, indicating silver fell much more sharply than gold.
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