Silver prices fell to their lowest levels since March, pushing the gold-to-silver ratio to its highest level in two months.
- Spot silver prices slumped 5% to $64.7 an ounce, while spot gold fell nearly 2% to $4,247 per ounce.
- Gold’s failed rally suggests sellers remain in control for now, said Ole Hansen.
- According to a Morningstar report from Monday, economists expect May inflation to remain elevated.
Silver prices tumbled on Tuesday as a broad sell-off swept through precious metals markets, with growing concerns over higher interest rates dampening investor appetite.
The decline pushed silver below its closely watched 200-day moving average, putting the metal on track for its first close beneath the key technical level since April 2025.
This comes after spot gold prices closed below their 200-DMA for the first time since October 2023 last Friday.
Spot silver (XAG/USD) prices slumped 5% to $64.7 an ounce, while spot gold (XAU/USD) fell nearly 2% to $4,247 per ounce. Futures showed even weaker momentum, with silver futures for July 2026 deliveries tanking nearly 6% while gold futures for February 2026 fell 2.3%.
Sellers In Control Now, Says Hansen
Silver is underperforming gold, adding to the weakness across precious metals and pushing the gold-to-silver ratio to its highest level in two months, said Ole Hansen, veteran commodities expert and Head of Commodity Strategy for Saxo Bank, in a post on X on Tuesday.
“Earlier in the session, gold’s attempt to break above $4,350 was firmly rejected, reinforcing the recent bearish technical outlook. Having already slipped below its 200-day moving average, the failed rally suggests sellers remain in control for now, with traders focusing on downside support levels while longer-term investors continue to wait for greater clarity on inflation, energy prices, and the Federal Reserve’s policy path,” Hansen added.
Higher Inflation Could Increase Selling Pressure
If U.S. inflation data for May comes in higher than expected on Wednesday, gold prices could face further pressure, Germany-based Commerzbank said in a note, as per a Reuters report on Tuesday.
“Should the U.S. inflation data for May also surprise on the upside on Wednesday, the gold price is likely to fall further. This also increases the potential for a recovery later in the year, should, as we expect, the Fed not raise interest rates,” the note read.
According to a Morningstar report from Monday, economists expect May inflation to remain elevated as higher energy costs continue to push up prices across several sectors of the economy. While the Fed is widely expected to leave rates unchanged this month, markets are still pricing in a possible rate hike before the end of the year.
What’s Retail’s Take On The ETFs?
Despite the sharp decline, retail sentiment surrounding SPDR Gold Shares ETF (GLD) remained ‘bullish’ over the past 24 hours. However, sentiment for iShares Silver Trust (SLV) trended in the ‘bearish’ territory.
GLD has declined more than 3% so far this year, while SLV has fallen more than 10%.
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