PABITRA BANERJEE: Gold Hits One-Year Low, Silver Slips Below $50 As Inflation Fears Bite Precious metals are having a rough run, with the latest sell-off taking gold to a one-year low and pushing silver below the $50-an-ounce mark for the first time since almost a year. Rising energy prices and stubborn inflation concerns are weighing on investor sentiment, with expectations growing that US interest rates could stay higher for longer. Both metals extended their monthly losses on Friday, with silver taking a sharper hit. Gold continued its downward journey on Friday, with spot prices falling 2.7% to $3,910.53 per ounce. This was the metal’s lowest level since October 2025. US gold futures for December delivery also slipped 2.8% to $3,919.60 per ounce. Bullion prices have declined 5.9% so far this month, tracking toward their second consecutive monthly fall as hawkish central bank signals dampen demand for non-yielding assets. Silver fared worse during Friday’s trading session, with spot prices dropping 5.8% to $49.34 per ounce. The sharp decline took the industrial and investment metal below the critical $50 mark for the first time since November 2025, bringing it to its lowest level in eleven months. Market analysts attribute the broad commodity sell-off to persistent inflationary pressures driven by surging global energy costs, which reinforce expectations that the Federal Reserve and other major central banks will maintain restrictive monetary policy stances for an extended period.
Gold&Silver prices dip before Diwali on inflationary pressure
Rising energy prices and hawkish central bank outlooks trigger a heavy sell-off in precious metals, sending bullion to multi-month lows.
