Silver Struggles as Gold Ratio Hits New High
Silver's price has been stuck in a tight band around $63, $65 per ounce, but the forces driving it are contradictory. Geopolitical tension and rising bond yields are pushing prices down, while expectations of a patient Federal Reserve and robust industrial demand are trying to prop them up.
The gold/silver ratio has climbed to 69.02, indicating silver is losing relative strength against gold. This move carries more weight than the day's modest price dip, with silver slipping 0.38% on Wednesday to $63.10 per ounce.
Over a longer horizon, silver has shed 11.23% since the start of the year, far from its record highs in January. The contrast with gold's resilience is stark, raising questions about whether this is a temporary blip or a more sustained period of underperformance.
The immediate pressure comes from rising bond yields and concerns over government spending and sticky inflation, which have driven oil prices up. A lapsed agreement between the US and Iran has also sent Treasury yields climbing further.