Silver Drops 6.3% to 3-Month Low, Gold Declines Weekly

Precious metal prices declined over the past week, pressured by growth concerns and rising interest rates, as gold fell 0.7% per ounce, while silver dropped 6.3% to $55.4 per ounce, recording its lowest level in three months.

The decline was not limited to gold and silver, as platinum fell 3.4% to $1,598.20, and palladium dropped 3.2% to $1,092, hitting its lowest level since August 2025.

The report attributed the pressure on metal prices to rising U.S. inflation, which reinforced expectations that the Federal Reserve will keep borrowing costs high for longer.

Monetary policy tightening increases the opportunity cost of holding non-yielding metals, driving investors toward interest-bearing assets.

What Do These Terms Mean?

Precious Metals: Rare and high-value metals such as gold, silver, platinum, and palladium, used for both investment and industrial purposes.

Opportunity Cost: The return an investor foregoes when choosing another alternative; buying gold, for example, means giving up bond yields.

Platinum and Palladium: Two precious metals primarily used in the automotive industry and catalytic converters, whose prices are influenced by industrial demand.