Precious Metals Rebound on Weaker US Dollar

Gold and silver prices recovered, supported by a weaker US Dollar and lower Treasury yields following US political developments. Silver notably outperformed gold, with analysts attributing its strength to a higher sensitivity to monetary conditions. The rally faced some headwinds later in the period as the dollar and bond yields began to rebound, adding pressure to prices.

Central Banks and US Dollar Volatility Dominate

The US Dollar experienced significant volatility, initially weakening after the US midterm elections before regaining ground on stronger-than-expected jobless claims data and hawkish Federal Reserve commentary. Fed officials reiterated that a gradual path of rate hikes remains appropriate, while the Bank of England’s own interest rate increase drew a muted market reaction as it was already priced in. The dollar's movements were a key driver for broader markets, including precious metals.

Mining Supply Faces Disruptions and Future Expansion

On the supply side, several miners reported operational challenges, with Sibanye-Stillwater cutting its output forecast for US platinum group metals due to a prolonged labor strike. In a separate development, Lundin Mining lowered its copper production outlook for its mine in Chile, citing disruptions from severe weather. In contrast, Caledonia Mining secured a $150 million funding facility for the development of a major new gold project in Zimbabwe, scheduled to begin production in 2028.