Gold and Silver Hammered Again — But Buyers Aren't Giving Up

Gold and silver are attempting to regain their footing after another brutal week. Gold plunged roughly 4%, finishing just above $4,000 an ounce in its sharpest weekly decline since June.

Silver fell nearly 6% to around $54.50 — its lowest closing level in almost a year. Both metals are trading sideways this morning.

The biggest problem remains the Federal Reserve.

Inflation is stubbornly elevated, and surging oil prices threaten to make matters worse. Brent crude topped $116 a barrel last week amid escalating Middle East hostilities, including renewed Houthi attacks on Saudi Arabia. Oil has retreated somewhat this morning amid hopes of easing tensions with Iran.

But here's the strange part: Gold fell sharply even as Treasury yields declined and the dollar weakened — developments that ordinarily favor precious metals. Instead, traders fear the Fed will keep interest rates elevated longer or raise them again in December.

Central bankers meet Wednesday and are expected to hold rates steady, but their guidance could matter more than the decision itself.