Gold & Silver Drop: Dollar, Yields Hit Metals
Gold fell 1.29% to US$4,357 and silver 1.14% to US$64.55 on Thursday as a firmer dollar and real yields pressured metals. The LatAm read. The post Gold & Silver Drop: Dollar, Yields Hit Metals appeared first on The Rio Times .
Gold and silver prices dropped on Thursday, August 13, despite U.S. wholesale inflation falling less than anticipated. The gold-tracking fund closed at US$4,357 per ounce, a 1.29% decline, while the silver-tracking fund ended at US$64.55 per ounce, down 1.14%. This decline was driven by a stronger dollar and a slight increase in inflation-adjusted U.S. Treasury yields.
When real yields rise, metals that do not pay interest become less appealing compared to cash and bonds. Latin America's miners, particularly Mexico and Peru, are closely monitoring these price fluctuations as they impact export revenues and local mining investments. The dollar's strength and rising real yields were the primary factors behind the metals' decline, rather than the inflation data.
U.S. investors should watch these developments to gauge the metals' short-term outlook, as the long-term outlook depends on lower real rates and persistent sovereign demand.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
