Gold and Silver Prices Decline for Second Week Amid Strong Dollar
Gold and silver prices are experiencing significant downward pressure, marking their second consecutive week of losses. This trend is attributed to a strengthening dollar and a decline in investor risk appetite, particularly concerning technology and artificial intelligence stocks.
In spot markets, gold saw a slight increase of 0.4%, reaching $1,790.80 per ounce, but is still on track for a weekly decline of 1.4%. Meanwhile, U.S. gold futures for April delivery decreased by 1.7%, settling at $1,806.50 per ounce.
Silver remained stable at $17.32 per ounce in spot transactions, following a steep drop of 19.1% in the previous session. This reflects a weekly loss of approximately 16%, marking the largest decline since 2011, amid a generally weak market sentiment.
Elia Spivak, head of global macroeconomic research at Tasty Live, commented, "The decline in risk appetite is evident, with falling stock markets and a sharp drop in Bitcoin's value, making gold appear more stable, while silver faces considerable pressure."
In related forecasts, JPMorgan anticipates that silver may experience further corrections due to its relatively high valuations, projecting a near-term price range between $17.50 and $18.00 per ounce, with a gradual recovery expected towards $19.00 next year.
On the currency front, the dollar is hovering near its highest level in two weeks, poised for its strongest weekly performance since November. This situation increases the cost of dollar-denominated assets for investors holding other currencies.
According to the "Fed Watch" tool, investors are anticipating at least two interest rate cuts of 25 basis points during 2026, with the first expected in June. Such cuts typically support the performance of non-yielding assets like gold.
In other metals, platinum fell by 4.7% in spot transactions to $1,892.74 per ounce after reaching a record high of $2,918.80 on January 26. Conversely, palladium rose by 0.8% to $1,628.95 per ounce, with expectations of continued weekly losses for mining companies.
