Silver and Gold Slide Amid Strong Dollar and Market Pressures

Silver and gold prices fell sharply on Thursday as global markets faced mounting pressures. A strong U.S. dollar and rising bond yields reduced the appeal of these non-yielding precious metals.


Silver was hit by both economic and geopolitical factors. Rising tensions with Iran pushed oil prices higher, fueling inflation expectations and increasing the likelihood of central bank tightening—typically negative for silver. Despite this, the metal still draws safe-haven demand amid regional instability. Saudi Arabia granted U.S. forces access to King Fahd Air Base, while the UAE restricted entry for Iranian citizens, signaling a widening Middle East conflict.


ETF liquidations added to the pressure. Silver fund holdings dropped to a six-month low after peaking in December, reflecting significant outflows of investment capital.
Gold mirrored silver’s decline, with June contracts down 2.9% ($139.40 per ounce). Like silver, it faced headwinds from a strong dollar, rising yields, and geopolitical uncertainty. Safe-haven demand remained, supported by U.S. political and economic uncertainties, including fiscal challenges and trade tensions.


Gold ETFs also saw outflows, with holdings falling to a three-month low. Yet central bank purchases provide support; for example, China’s reserves rose by 30,000 ounces in February, continuing a 16-month streak of increases and reinforcing gold’s long-term appeal.


In the short term, both metals face pressure from a strong dollar, monetary tightening, and ETF liquidations. However, safe-haven demand and central bank buying offer counterbalance. Their future direction will hinge on geopolitical developments, energy prices, and global monetary policies.