Why Gold & Silver Just Hit A Massive Wall

Added: 2026-05-23

[00:00:00]Gold and silver are stuck between two different drivers that should send them moving in one direction or another, forming a wall which they cannot get past. I'll explain why and how in this video as we explore.

[00:00:22][music] Gold and silver are down today. They got hit, but not nearly as bad as a Platinum Group medals. It's been a pretty amazing ride. Fridays are usually the smackdown day, and of course, we are seeing a little bit of pain in the markets, but nonetheless, it does provide opportunity for those of you who are buyers, but nonetheless, gold and silver prices are caught between two different drivers that we're going to be talking about now by an article here from Neil Christensen. Gold and silver are managing to hold key near-term support levels ahead of the weekend. That's right, stuck in this rangebound area. In fact, right smack down in the middle of it. That is about $75 for silver and $4500 for gold. Now, this is pretty interesting territory. You know, I've been talking about that rangebound for silver. That's become quite boring for this metal. But nonetheless, the wheels of the markets continue to spin and that is reflecting in terms of uh the what silver and gold prices are doing. Now, I will say silver did spike up above $80 earlier in the trading session, but only to be smacked right back down again dramatically here in the late trading session here. But some analysts have said that the volatility in bond markets this past week could be a sign of shifting fears in the marketplace. So they're stuck between neutral territory.

[00:01:55]Um although long-term bonds are looking to end the week down from the recent highs, they remain in critical elevated territory. The yield on the 30-year US Treasuries is holding above 5%. And the yield on the 10-year notes is ending the week above 4.5%. So that's one of those drivers. Now, we can use this volatility to our advantage um and even the wall to our advantage by dollar cost averaging in and out of the markets. But of course always involves have your level of understanding, your own level of research uh before you buy or sell precious metals. My friends at Summit Metals, they are there for you whenever you want to make a decision to buy, sell or just to see what kind of services they have to offer there. Uh check them out. Link is in the description below.

[00:02:47]So analysts note that in the short term, higher bond yields represent significant headwinds for gold and silver. Rising bond yields could force a Federal Reserve to raise interest rates by the end of the year, which in turn would raise the opportunity cost of holding non-yielding assets like gold and silver. However, analysts also note that there is a fine line between higher bond yields caused by rising inflation and a potential bond crisis that would support precious metals as a wealth preservation tool. And that's really kind of the another intricacy here as we uh denote and kind of assess what's happening in the markets. You know, it is pretty amazing to see uh how quickly and how sensitive the markets are and how they react. So there's this push and pull that we're seeing here between the uh the between rate hikes and bonds and bond and essentially the bond market stress. Uh Nahim Alam, chief investment officer at Zay Capital Markets said that the risk of a bond crisis is rising but the storm isn't hit yet. We're getting close to that point but we're not there fully. The key risk is the long end of the curve becoming an untethered if 10year and 30-year yields keep rising in a disorderly way. Markets may begin to question whether the government bonds still offer the same safe haven protection. The signal to watch is simple. If long yields rise but gold stops falling that means investors are no longer seeing higher yields as a reason to avoid the metal and silver as well as gold are seeing them as they're seeing them as a reason to actually own it that is when renewed wealth preservation demand can come back strongly so that is the the aspect here now remember in between all this we have the Iran war and the situation really essentially remains unchanged and oil Prices though are down slightly, down 3 cents per barrel to $96.32.

[00:04:53]That should weigh uh for precious metals uh and going up is what we've been seeing recently. That's not the case today though. Um and so with silver down 1.54% today and oil down a little bit, uh that is a little bit of a difference.

[00:05:10]This is why it's hitting a wall. John Rio, chief business officer at international brokerage firm B2 broker said that he is also watching for potential bond crisis. But he added that for gold investors, the environment will likely get worse before it gets better.

[00:05:26]Although gold is still respected as an anti-inflationary and anti- geopolitical stress hedge, uh it it faces an increased headwind from increased vocal fixed income narratives, betting on incumbent F chair Kevin Walsh's more hawkish stance than his predecessors. At the end of the day, gold may face a short-term correction as geopolitical tensions and a slowdown in central bank purchases are weighing on investor sentiment. Nevertheless, and the ongoing quiet rollover of many central banks reserves from sovereign bonds to precious metal effectively sets a firm floor against any significant bearish speculation.

[00:06:07]That's another sign we're essentially could see uh another wall forming here preventing gold and silver from going up or down. That's really kind of intriguing to think about it. In other words, gold and silver could become boring again. And I'm okay with that. In fact, I think the whole entire precious metals market needs to kind of take a breather and needs to normalize. Uh and you know, it's exciting to see these moves uh especially with supply chain issues. But if we can see a normalization, especially for those who see it as a stable store of wealth, the key word being stable, well, that's what we're looking for here. Near-term, Marilo said that there's a risk that the gold price could drop to $4,000 an ounce, but in the long term, he sees potentials for prices to hit 10,000. Of course, what does that long-term mean?

[00:07:01]Well, that's anybody's guess. The view is not unique, but is based on growing concern about sticky inflation caused by the long-term consequences at high impact of the Middle East conflict reinforced by the US dollar's weakening momentum. He said not all analysts are convinced that a broad crisis is looming in the on the horizon. Fixed income strategist at TD security said that the rise in long end of the yield curve is in line with rising inflation expectations.

[00:07:31]Um the repricing of Fed expectations has been the primary driver of higher rates.

[00:07:37]rising inflation uh expectations are still solid growth momentum. However, have they've contributed to the upward pressure. Uh we don't believe that the move higher in rates is currently being driven by renewed worries about US deficits or lack of foreign demand.

[00:07:54]While we don't believe the Fed wants to rate hikes uh or hike rates, markets could continue to price in more hikes, risking a further drift higher in near-term Treasury yields. The CME's Fed watch tool now indicates that there's a greater probability of a 25 point base rate hike before the end of the year, about 42% than the rates being kept on hold, which is about 30%. Meanwhile, the likelihood of a 50 basis points worth of hikes this year has risen to 22% from zero just a month ago. So, what that's what we're looking at here. It's it's a familiar theme in the marketplace with a relatively light week of economic data.

[00:08:40]Markets will continue to pay attention to headline risk surrounding the war in Iran. Holidays in Europe, the UK, and the US mean trading activity for the start of the week will be extremely light. So, we'll see the Asian markets and every Sunday night on this channel, we monitor the Asian markets as they open up um in pre-Asian market trading, but nonetheless, it's going to be kind of relatively subdued with very little expectations from the US markets as they will not be open for the Memorial Day holiday. So, the consumer sentiment survey that the University of Michigan held uh has fell to a fresh record low of 44.8. At the same time, the one-year inflation expectations rose at 4.8%.

[00:09:22]And that's what we're looking at. Now, what is going to be happening next week?

[00:09:26]Well, US, Europe, and UK markets will be closed. Tuesday, we'll see the US consumer sentiment numbers. And then the preliminary first quarter GDP, uh, PCE and US weekly jobs jobless claims will come out on Thursday, as well as durable goods and US new home sales. So, that's the backdrop of what we're looking at here. So, it's pretty interesting. So, we're are to sum up, we've got a situation where uh the gold and silver prices are essentially stagnant for all intents and purposes. Uh the caught between rate hike fears and the bond market stress that we're looking at. So, fascinating. We'll see how it all plays out, but until the weekend, we can enjoy a little bit lower silver prices, a little bit lower gold prices, but that's a a really rangebound for both these metals. Uh, but I continue to enjoy them and uh we'll continue to stack gold and silver and hold on. That's what it's about, holding on tightly to your precious metals. So, let me know what your thoughts are in the comments section down below. Hope you found this video informative, insightful, and educational. Would like to extend a multitude of gratitude to each and every one of you for taking the time to watch and to encourage you to please rate, share, comment, and subscribe.

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