Stronger-than-expected employment data led to reduced hopes for interest rate cuts, prompting investors to aggressively short precious metals on Friday.
📊 Key numbers:
🥇 Gold closed at $4,339.61 per ounce.
📉 A decline of 3.27% in just one day.
🥈 Silver fell to $68.57 per ounce.
📉 A strong loss of 7.17%.
⚡ Why did the metals drop?
🔹 Strong job data diminished chances of rate cuts anytime soon.
🔹 Rising U.S. bond yields increased pressure on gold and silver.
🔹 The strength of the dollar pushed some investors out of precious metals.
🤔 But there's another story for silver...
Despite the sharp drop, long-term outlook remains bullish:
🔥 The Silver Institute forecasts actual investment demand of 227 million ounces by 2026.
📈 The highest level since 2022.
⚠️ The market still suffers from a persistent supply shortage.