Gold and Silver Slide on Dollar Strength, Yet Other Headwinds Ease – Saxo Bank’s Hansen

Gold has fallen below $4,000 and silver below $60, souring market sentiment amid a stronger dollar and the hawkish FOMC stance last week, according to Ole Hansen, head of commodity strategy at Saxo Bank. He noted gold is down 8.4% year-to-date though still up 18.5% over the past 12 months, while silver has dropped 19% this year but remains 56% higher over the trailing year. The dollar’s surge to a fresh 13-month high has raised holding costs for these assets during a 26% gold correction from January’s peak above $5,600.