Silver Drops 6% To $55.51 While Gold Holds Up: Back To The $50s?

Gold and silver fell sharply on Wednesday last week, with both metals moving back towards their post-peak lows established in July.

Gold was priced at $4072 in early trading, down almost $90 oz; then rebounded to close slightly above $4100, down about $60 from yesterday’s close. The net loss was 1.14%.

Silver found little support and landed at $55.27 early in the day. The closing price for silver was $55.51, down $3.54, a whopping 6% from the day before.

Weakness in both gold and silver spread to mining stocks, and trading was influenced by a hot CPI print and rising fears of further Federal Reserve rate hikes.

The current gold price is $4117. The current silver price is $57.76.

BACK TO THE FIFTIES FOR SILVER 

After a brief respite that took silver back above $60 oz. for several weeks, the white metal has returned to the $50s with a vengeance. From last Monday’s (October 12th) intraday high at $61.57, the silver price fell more than 10%. Whatever encouragement might be inferred from gold’s reluctance to surrender to bearish forces seems lost on silver.

GOLD AND SILVER TAKE THEIR CUES FROM THE USD 

The U.S. dollar continued its upward march against fellow fiat currencies. Intraday, DXY (USD ETF) was up nearly 1% before backing down in later trading.

Currently, DXY is trading at 101.73. Its recent high was 102.96.

The U.S. dollar will continue to strengthen versus other currencies and could gain purchasing power as dollar prices for most assets (stocks, bonds, commodities, and real estate) will see huge declines soon.

Gold and silver have seen their peak prices for months to come. The U.S. dollar has more life left and will continue to strengthen. Correspondingly, declining gold and silver prices have not seen their lows yet.

1980, 2011, & 2026 

Gold and silver prices experienced blowoffs in 1980 and 2011. The blowoffs resulted in peak prices that lasted for years.

I believe that gold/silver at $5400/$120 in January 2026 were major price peaks. The trend for gold and silver prices is down and will remain so indefinitely.

The cumulative declines will exceed worst-case scenarios and last longer than most people can imagine.