Gold prices slipped on Thursday as worsening Middle East tensions revived inflation concerns and investors backed away from riskier bets. Silver fell harder than gold, pushing the gold-silver ratio to 70:1, near the high end of its range over the past two years.
Gold retreated on Thursday as traders weighed a deepening Middle East conflict and pulled back from risk. Spot gold was down 0.6% and silver fell 1.8%, according to Reuters, as the standoff revived worries about inflation. The move rippled across commodities and dragged Canadian equity futures lower.
Oil holds firm as metals soften
The pullback was not uniform across the complex. Brent crude fell 1% while West Texas Intermediate shed 0.6% but stayed near one-month highs, as traders weighed supply risks tied to the conflict. Metals, by contrast, gave ground, with September futures on the S&P/TSX index down 0.2% in early trading.
The gold-silver ratio hits 70:1
The sharper drop in silver opened a notable gap between the two metals. Gold finished the prior session essentially flat while silver dropped 1.4%, touching $57.84 an ounce, according to GoldSilver, lifting the gold-silver ratio to 70:1 — near the high end of its range over the past two years. Historically the ratio has run from roughly 30:1 at its tightest to 127:1 at its widest.
GoldSilver attributes the divergence to the two metals responding to different forces. About 58% of all silver demand is industrial, per the Silver Institute's World Silver Survey 2026, so silver's outlook softens when higher rates threaten growth. Gold, tied instead to monetary demand, does not carry that same drag.
Rate path stays the pivot
The Fed remains the swing factor for both metals. The FOMC meets July 28–29, and while GoldSilver notes July hold probability sits near 90%, CME FedWatch still prices meaningful odds of a September hike. A hold followed by a soft June PCE print on July 30 would likely compress the ratio, while any hike signal would keep pressure on silver.
Sources: Reuters, GoldSilver
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