The strength of the dollar puts pressure on gold and silver prices weekly

Gold and silver prices rebounded after early losses today, but are heading for a decline for the second week in a row, and the global decline in technology company stocks and the rise in the value of the dollar erased most of the gains achieved by the two precious metals during a short recovery period earlier this week.

Gold rose in instant transactions by 0.4 percent to $4,790.80 per ounce by 02:24, but it is heading for a weekly decline of 1.4 percent.

US gold futures for April delivery fell 1.7 percent to $4,806.50 an ounce.

Silver in spot transactions generally stabilized at $71.32 per ounce after falling 19.1 percent in the previous session.

It fell earlier today by ten percent below the level of $65, recording the lowest level in more than a month and a half.

Silver is also heading to record a loss for the second week in a row, and fell approximately 16 percent after falling 18 percent last week in the largest weekly decline since 2011.

Ilya Spivak, head of the global macroeconomics department at Tasty Life, said, “It appears that risk appetite has declined, stock prices have fallen, and it is clear that we are witnessing a sharp collapse in the value of Bitcoin. There are many indications that the appetite for risk in general is weak. Under these circumstances, gold maintains its relative stability, while silver declines under the weight of risk aversion.”

JP Morgan Bank indicated in a note that the relatively high valuations of silver make it vulnerable to major corrections during risk-off sessions, although the bank expects a higher lower level in the near term at around $75 to $80, and a recovery towards $90 next year.

The dollar stabilized near the highest level in two weeks, and is on track to record its strongest weekly performance since November.

The rise in the dollar increases the cost of assets denominated in it for holders of other currencies.

According to the FedWatch tool, investors expect interest rates to be cut at least twice by 25 basis points in 2026 with the first cut expected in June.

Non-yielding assets usually perform well in times of low interest rates. Platinum in spot transactions fell 4.7 percent to $1,892.74 per ounce after hitting its highest level ever at $2,918.80 on January 26, while palladium rose 0.8 percent to $1,628.95.

The two metals are heading to record a weekly loss.