Gold at 2-week low, silver falls to $76.17 on Friday
Gold and silver prices dropped sharply on Friday, with gold hitting a two-week low and silver falling to $76.17 an ounce.
Both metals are set for big weekly losses (gold is down 4.15% and silver 5.48%), mainly because US inflation is sticking around and the US dollar keeps getting stronger.
Profit taking, inflation hit silver
Silver actually touched a two-month high earlier this week but lost those gains fast as investors cashed out (profit booking) and got spooked by rising inflation.
Higher energy costs are making things worse, lowering chances of quick Fed rate cuts, so more people are turning to the US dollar for safety, which puts extra pressure on gold and silver.
Yields near year highs, dollar up
US Treasury yields are close to their highest in a year, making non-interest assets like gold less attractive.
The US dollar index also jumped over 1% this week, adding more weight on precious metals.
Still, analysts say that ongoing energy risks and global tensions could help support gold and silver in the long run.