Gold and Silver Prices Hang at Critical Levels as October Approaches
The price of gold and silver is currently at critical levels after falling from their recent highs. The silver price has dropped to $60.98, down 0.29% on the latest 4-hour candle, while the gold price has pulled back to $4,155.75, down 0.55%. Despite these declines, there are several factors that could influence both metals in October.
One key factor is the softer inflation data, which has cooled expectations for an October Fed rate hike. However, elevated Treasury yields and a stronger dollar continue to put pressure on gold and silver prices.
Morgan Stanley's Amy Gower believes that central-bank demand remains strong, and ETF demand has held up despite higher interest-rate expectations. She also expects the gold price to return above $5,000 per ounce in the second half of 2027.
Another factor to consider is the increasing popularity of Bitcoin among institutional investors. Bitwise's head of research, Ryan Rasmussen, notes that sovereign wealth funds are selling gold and foreign-exchange reserves to fund Bitcoin allocations.