From The Rio Times · Diego Fernández · · 1m 30s
Silver Plunges 6% as Gold Drops Below US$4,100
Gold falls below $4,100 while silver drops 6% after US inflation beats forecasts.
In brief
Gold falls below $4,100 while silver drops 6% after US inflation beats forecasts. Gold dropped below $4,100 and silver plunged 6% on Wednesday as US inflation exceeded forecasts. Originally reported by The Rio Times.
Gold and silver drop sharply
Gold fell below US$4,100 and silver plunged about 6% on Wednesday 14 October, Kitco reported, after US inflation topped forecasts.
“Gold fell below US$4,100 and silver plunged about 6% on Wednesday 14 October, Kitco reported, after US inflation topped forecasts.”
Market funds lose value
The GLD gold fund lost 1.49% to US$375.99 and the SLV silver fund 6.11% to US$50.22, while the GDX gold miners fund fell 4.40% to US$83.40.
“The GLD gold fund lost 1.49% to US$375.99 and the SLV silver fund 6.11% to US$50.22, while the GDX gold miners fund fell 4.40% to US$83.40.”
US inflation rises
US inflation rose 3.7% in September, above the 3.6% forecast, lifting Treasury yields and the dollar and raising bets on Federal Reserve rate rises.
“US inflation rose 3.7% in September, above the 3.6% forecast, lifting Treasury yields and the dollar and raising bets on Federal Reserve rate rises.”
Latin American miners fall
Pan American Silver, with mines in Mexico and Peru, fell 4.94% to US$42.33, and Peru’s Buenaventura fell 3.11% to US$30.52.
“Pan American Silver, with mines in Mexico and Peru, fell 4.94% to US$42.33, and Peru’s Buenaventura fell 3.11% to US$30.52.”
Prediction markets react
Polymarket gives 80.5% that gold touches US$4,200 in October and 42% that it touches US$4,000 (US$271,213 traded, read at 8:25 pm ET on 14 October).
“Polymarket gives 80.5% that gold touches US$4,200 in October and 42% that it touches US$4,000 (US$271,213 traded, read at 8:25 pm ET on 14 October).”
Why metals fell
Higher US yields and a stronger dollar make metals that pay no interest less attractive.
“Higher US yields and a stronger dollar make metals that pay no interest less attractive.”
What matters next
Silver’s fall was four times gold’s, which matters to US holders of silver funds and to Mexico and Peru, two of the world’s main silver producers.
“Silver’s fall was four times gold’s, which matters to US holders of silver funds and to Mexico and Peru, two of the world’s main silver producers.”
What to watch
US retail sales on Thursday 15 October at 12:30 UTC are the next test for metals.
“US retail sales on Thursday 15 October at 12:30 UTC are the next test.”
Here's the gist
Gold dropped below $4,100 and silver plunged 6% on Wednesday as US inflation exceeded forecasts.
