Gold & Silver Struggle as Fed's Hawkish Moves Weigh Heavy
By John Nada·Jun 25, 2026·2 min read
Gold and silver prices remain under pressure as hawkish central banks and inflation fears weigh heavy. Adami remains hopeful for gold's future amid challenges.
Gold and silver are feeling the heat as hawkish central bank policies and inflation fears depress precious metal prices. "Gold is going to be back in favor," says Guy Adami, co-founder of RiskReversal Media, despite the headwinds. He told CNBC's "Closing Bell Overtime" that inflation remains a problem and interest rates are likely to rise, but gold's appeal as a hedge hasn't entirely vanished.
CNBC Business reported that spot gold fell 0.5% to about $3,980.79 an ounce early Thursday, slipping below the $4,000 threshold, while U.S. gold futures were down 0.2% at $3,986.60. Year-to-date, gold is down 7.7%. Silver isn't faring any better, with spot prices dropping 1% to $56.86 and futures down 1.5% at $57.24 — a 20% loss this year.
These declines follow record-setting rallies in 2025, where gold surged 66% and silver an astonishing 135%, only to face volatility fueled by geopolitical turmoil and central bank actions. The threat of a Fed rate hike, fully priced in for September according to the CME's FedWatch tool, looms large.
Gold Drops Below $4,000 Amid Fed Rate Hike Speculation
Gold falls below $4,000 as Fed rate hikes loom, but long-term fundamentals remain intact.
Strategists at Macquarie noted that the Middle East conflict's end, coupled with hawkish Federal Reserve moves, has diminished gold's safe haven charm. A stronger USD and the prospect of higher interest rates continue to pressure the metals. Macquarie forecasts an average gold price of $4,641 per ounce for 2026 but expects a decline to $4,200 in 2027.
Silver's story is similar. Despite outperforming gold recently, silver might retrace quickly under current macroeconomic pressures. Macquarie anticipates silver to reach $70 per ounce later this year but sees a drop to $65 by 2027. Inflation and rising bond yields add weight, creating a volatile environment for precious metals.
Despite the downturn, central banks aren't backing away from gold. The World Gold Council's survey reveals that nearly 90% of central banks plan to increase gold reserves, highlighting its role as an inflation hedge. Yet, Wall Street analysts are cautious; OCBC strategists suggest that gold price action is increasingly linked to real yields.
The tug-of-war continues. While Adami remains optimistic about gold's long-term role, the current atmosphere, marked by a hawkish Fed and shifting investor preferences, paints a challenging landscape for precious metals. As Macquarie puts it, it might take a "major macro event" to reignite gold's appeal.