08/30/2026
๐๐๐๐ค๐ฅ๐ฒ ๐๐๐๐๐ฉ โ ๐ ๐๐๐ฅ๐ฆ ๐๐๐๐คโฆ ๐๐ง๐ญ๐ข๐ฅ ๐๐๐๐ค๐ฌ๐จ๐ง ๐๐จ๐ฅ๐
Gold and silver were holding up pretty well all week โ right up until Friday.
Then Fed Chair Kevin Warsh took the stage at Jackson Hole, rate expectations shifted fast, the dollar jumped, and both metals gave back a big chunk of their recent gains.
๐๐จ๐ฅ๐ ๐๐๐ซ๐ค๐๐ญ
โข Gold closed at $4,456.40, down $148.00 (-3.2%) for the week.
โข But Friday was basically the whole week. Gold fell $146.40 on Friday alone after trading near $4,700 earlier in the week.
โข Even after that drop, gold is still up 10.2% for August and 3.2% YTD.
๐๐ข๐ฅ๐ฏ๐๐ซ ๐๐๐ซ๐ค๐๐ญ
โข Silver closed at $66.50, down $2.61 (-3.8%) for the week.
โข Silver actually touched $70 Friday morning before reversing sharply and finishing the day down $2.88.
โข Itโs still up 15.3% for August, although itโs now down 7.2% YTD.
๐๐จ๐ฅ๐-๐ญ๐จ-๐๐ข๐ฅ๐ฏ๐๐ซ ๐๐๐ญ๐ข๐จ: ๐๐
Exactly where it was last week. Gold and silver fell together Friday, which tells us this was less about either metal specifically and more about the bigger macro picture โ interest rates, bond yields and the dollar.
๐๐จ, ๐๐ก๐๐ญ ๐๐๐ฉ๐ฉ๐๐ง๐๐?
The interesting part is that metals werenโt struggling heading into Friday. Quite the opposite.
Gold had climbed as high as $4,696 earlier in the week, and investors poured $4.21 billion into gold and other precious-metals funds in the week through Wednesday โ the strongest weekly inflow in six months.
Then the mood changed.
๐๐ง๐๐ฅ๐๐ญ๐ข๐จ๐ง ๐ซ๐๐๐ฎ๐ฌ๐๐ ๐ญ๐จ ๐๐จ๐จ๐ฉ๐๐ซ๐๐ญ๐.
โข Wednesdayโs PCE report โ one of the Fedโs main inflation gauges โ showed prices up 3.7% from a year ago, slightly above the 3.6% economists expected. Core inflation came in at 3.3%.
โข Not a huge surprise, but it was another reminder that inflation is still running well above the Fedโs 2% target.
๐๐ก๐๐ง ๐๐๐ฆ๐ ๐๐๐๐ค๐ฌ๐จ๐ง ๐๐จ๐ฅ๐.
โข On Friday, Warsh gave his first Jackson Hole speech as Fed Chair and made it clear that the Fed may still have โwork to doโ if inflation doesnโt start moving convincingly back toward 2%.
โข Markets got the message. Before the speech, traders put the odds of a September rate hike at about 35%. Afterward, those odds jumped to nearly 58%.
โข The dollar surged to its biggest daily gain in about 2ยฝ months, bond yields moved higher, and gold and silver reversed hard.
๐ ๐๐ข๐ ๐ซ๐๐ฅ๐ฅ๐ฒ ๐ฌ๐ฎ๐๐๐๐ง๐ฅ๐ฒ ๐ก๐๐ ๐ ๐ซ๐๐๐ฌ๐จ๐ง ๐ญ๐จ ๐ญ๐๐ค๐ ๐ ๐๐ซ๐๐๐ญ๐ก.
โข Gold and silver had already climbed sharply through August, and a lot of fresh currency had moved into precious metals.
โข When traders suddenly started expecting higher interest rates, some of that fast trade headed for the exits.
Why do rates matter so much?
Physical gold and silver donโt pay interest. When markets expect higher rates, interest-paying assets become more attractive and the dollar often strengthens. Both can put pressure on metals โ especially after a strong run.
And thatโs really the story of Friday.
There wasnโt suddenly bad news about gold or silver themselves. What changed was the marketโs expectation for what the Fed might do next.
And, these expectations can be grossly incorrect. We now have a Treasury fighting raising bond interest rates at the same time discussions over interest rate hikes by the Fed are intensifying. But remember, the United States is now over $40 trillion dollars in debt, which a huge portion needs to be rolled over and refinanced in the coming months. Higher interest rates makes massive debt refinancing much harder, especially with interest payments alone matching or surpassing the largest budget expenditures by the government. The tug-o-war between the Treasury and the Federal Reserve seems to be well underway, and more volatility is likely around the corner.
๐๐จ๐จ๐ฆ ๐๐ฎ๐ญ
Friday changed the weekly chart. It didnโt erase the bigger move.
Gold is still up 10.2% this month.
Silver is still up 15.3%.
And compared with one year ago:
Gold: $3,448.70 โ $4,456.40
Silver: $39.73 โ $66.50
Thatโs a much different picture than Friday afternoon alone would suggest.
Markets rarely move in a straight line, which is exactly why we like to zoom out and look at whatโs driving the movement โ not just whether the screen is green or red on any one day.
Questions about something you saw here? Come see us. Weโre always happy to talk metals and help make sense of whatโs moving the market.
๐ Until next week, stack smart!
๐๐ฐ๐ข๐ง ๐๐ข๐ญ๐ฒ ๐๐จ๐ฅ๐ & ๐๐ข๐ฅ๐ฏ๐๐ซ ๐๐ฑ๐๐ก๐๐ง๐ ๐ in
๐ TuesโFri 10amโ6pm | Sat 10amโ2pm
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๐ (903) 838-3928
Twin City Gold & Silver Exchange is not a registered investment advisor. Content is for informational purposes only and does not constitute investment advice.
