Forex
US Interest-Rate Expectations Weigh Down Gold and Silver ETFs
Gold and silver exchange-traded funds (ETFs) took a hit on Friday, with silver ETFs declining more sharply than their gold counterparts.
The decline mirrors weakness in the underlying precious metals as investors reassess expectations around the US Federal Reserve's interest-rate path.
A combination of higher US interest-rate expectations and rising Treasury yields has driven down prices. Stronger-than-expected US producer-price data has increased bets that the Federal Reserve could maintain a tighter monetary policy stance.
Higher interest rates typically weigh on gold and silver because these assets do not generate interest income, making them relatively less attractive when bond yields rise.