Gold and Silver kept falling on Friday even as US Treasury yields and the Dollar Index declined. ActionForex says position-cutting across volatile assets is a plausible explanation, though not a confirmed one. Gold's 3,942.71 support and Silver's $50 level are the next tests.
Gold and Silver fell again on Friday despite lower US Treasury yields and a weaker Dollar. Gold briefly broke below 3,975 before recovering toward 4,000, while Silver dropped more than 2% to around 50.90.
Falling yields and Dollar fail to lift metals
The US 10-year Treasury yield retreated toward 4.93%, while the 2-year yield traded around 4.59%. Platinum also lost approximately 3%.
Lower yields and a softer Dollar would normally support non-yielding metals. Yet Dollar Index weakened toward 101.67 and the selling continued. Persistent inflation remains a possible headwind: September's headline PCE inflation accelerated to 3.6%.
ActionForex concludes that the usual monetary-policy explanation does not fully account for the weakness.
Tech and crypto selling point to position-cutting
One possible explanation is the simultaneous weakness in technology stocks and cryptocurrencies. Alphabet plunged 12.64% on Thursday, intensifying concerns about AI infrastructure spending. Separately, Binance disclosed a security incident with an estimated financial impact of approximately $6.3B, and Bitcoin traded near $78,000.
Investors appear willing to seek protection in government bonds, yet Gold and Silver have not drawn comparable safe-haven demand. The pattern is consistent with investors reducing exposure across volatile markets, ActionForex says, but it does not prove margin calls or forced liquidation.
Technical levels decide the next move
Gold's decline from 4,697.07 resumed, and the near-term outlook stays bearish while 4,083.41 resistance holds. A firm break below 3,942.71 support would bring 3,748.81 into focus.
For Silver, the $50 level sits close to a projection at 49.77. Daily RSI has fallen toward 26.7, an oversold reading, so a rebound could develop. A firm break of the 49.77 to 50.00 zone would point toward 46.43.
The Gold/Silver ratio surged to around 78.48, which suggests Silver's relative weakness may persist even if both metals stabilize.
Source: ActionForex
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