Today, gold futures on the COMEX exchange fell 3.91% to $3,987.3 per ounce, reaching their lowest level since November 18, 2025. Since the beginning of the year, the price of gold has fallen by approximately 8%.
Silver also continued to fall: COMEX futures traded below $60 per ounce for the first time since December 9, 2025. At one point, the price dropped 3.71% to $59.77, but later recovered to $60.075, still down 3.22%.
Pressure on the market was exacerbated by the rise of the U.S. dollar, which reached a 13-month high, according to Reuters. The strengthening of the U.S. currency reduces gold’s appeal to investors holding other currencies, while expectations of a Fed rate hike make yield-bearing assets more competitive.
Changes in expectations regarding U.S. monetary policy were an additional factor. New Fed Chair Kevin Warsh adopted a more hawkish stance than markets had anticipated at his first rate-setting meeting, increasing the likelihood of a rise in borrowing costs.
According to Bloomberg, the conflict between the U.S. and Iran also influenced investor sentiment. Rising energy prices intensified fears of accelerating inflation and increased the likelihood that the Fed would maintain its hawkish stance. This weakened gold’s position as a safe-haven asset.
Silver came under even greater pressure, as investors are considering not only financial factors but also the outlook for industrial demand. Unlike gold, silver is widely used in manufacturing, so it reacts to both interest rate changes and expectations of a global economic slowdown.
Major banks have already begun revising their forecasts for gold. For example, Bank of America acknowledged that its previous forecast of a rise to $6,000 per ounce was less likely. Deutsche Bank lowered its estimate to $4,300 per ounce for the third quarter, warning that a series of Fed rate hikes could push prices down to $3,800.
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