Gold and Silver retreats to FOMC lows as US Yields surge

The metals market is broadly lower this week amid renewed selling pressure. Gold opened the week near $4,383.50, dropped below the $4,300 mark on Wednesday and tested a low around $4,245. Price currently trades around $4,266 after its recovery ran into resistance near $4,310 in today’s session.

Silver opened the week around $67.00 and reached a weekly high of approximately $67.57 on Tuesday before eventually giving up its gains. Price subsequently fell towards $63.00, where dip buyers stepped in and pushed it back towards $65.00. However, resistance stalled the recovery, sending silver back towards the $63.80 region.

The renewed selling pressure has coincided with another sharp rise in US Treasury yields and a stronger US dollar. The US 10-year Treasury yield climbed above 5% this week, reaching around 5.2%, while the DXY maintained its composure above the 101.00 mark.

Gold and silver have now returned to their FOMC levels. In an interesting turn of events, both metals initially rose following the FOMC decision despite a hawkish Fed and aggressive market pricing for further rate hikes. However, the metals market is now beginning to feel the pressure from higher yields, a stronger dollar and expectations of further monetary tightening.

Gold returns to its FOMC low

Gold is down approximately 2.5% this week and is currently testing support around $4,267.60. Price has already returned to—and briefly traded below—the FOMC low around $4,275, making the current area an important battleground for the market heading into next week.

A sustained move below $4235 would strengthen sellers’ medium-term control of the gold market, particularly if Treasury yields and the US dollar remain elevated. Buyers, meanwhile, would need to reclaim the $4,300–$4,310 region to ease the immediate bearish pressure.

Silver sellers target $62.31

Silver is also down more than 3% this week, with support around $63.75 currently limiting further downside. Below this area, attention would shift towards the FOMC low around $62.31.

A sustained break below $62.31 would give sellers more decisive control of the market and could open the door to further losses. Conversely, buyers would need to reclaim the $65.00 region to strengthen the case for a more meaningful recovery.

It has not been a pretty week for the metals market, with sharp swings recorded both at the beginning and towards the end of the week, although the overall direction has remained predominantly bearish.

The key question is whether selling pressure will continue next week and push gold and silver decisively below their respective support levels. However, the upcoming Core PCE Price Index and US Nonfarm Payrolls reports could challenge the bearish outlook if the data disappoints and eases expectations of further Federal Reserve tightening.