Gold and silver slide as GLD hits 52-week low and SLV falls to 11-month low

what happened

According to Stocktwits, gold and silver prices tumbled on Friday. The sell-off was linked to inflation concerns driven by higher energy prices and expectations of a possible Federal Reserve rate hike later this year. Spot gold fell 3% to $3,897.17 an ounce, while silver dropped more than 6% to $49.08, slipping below $50 for the first time since November 2025. The SPDR Gold Shares ETF (GLD) hit a 52-week low, and the SLV silver ETF fell to its lowest level in more than 11 months.

Bart Melek, global head of commodity strategy at TD Securities, said higher oil prices were pushing markets into risk-off mode and fueling a Treasury rally, which drains liquidity from equities and gold. Veteran trader Peter Brandt attributed silver's slide to investors who bought above $90-$100 an ounce now selling their positions. According to the CME FedWatch Tool, the odds of a December rate hike stand at 73%.

why it matters

Gold and silver are reacting not only to inflation but also to expectations of higher interest rates, as Treasury yields rise and non-yielding metals lose appeal. Retail sentiment on Stocktwits stayed bullish on GLD and turned extremely bullish on SLV over the past day.

market impact

Gold and silver: expectations of a Fed rate hike pressure precious metals through higher bond yields.

• ▼Gold pressure down — expectations of higher Fed rates and rising Treasury yields reduce the appeal of the metal
• ▼Silver pressure down — selling by large holders and the same rate backdrop deepen the decline

tags

instruments