Gold and Silver Prices Slip Amid 'Buy the Rumour, Sell the Fact' Market Reaction
The price of gold and silver on August 14, 2026, took a hit as investors locked in profits following the release of US inflation data. The COMEX gold futures dropped by over 1%, while domestic MCX prices saw a marginal dip.
This market reaction is often referred to as 'buy the rumour, sell the fact.' Investors had pushed prices higher in anticipation of softer inflation data, but the actual report provided a reason to lock in gains rather than drive further buying. The US consumer price index (CPI) for July was reported at 3.4% year-on-year, largely aligning with market forecasts.
The drop in the probability of a Federal Reserve rate hike in September from around 60% to approximately 36% also contributed to the cooling in sentiment. Geopolitical tensions and rising real bond yields remain factors that could influence volatility in gold prices.