Gold and silver sell-off accelerates - Dollar rises as inflation fears grip global markets

Gold and silver have been falling since the war in Iran began, despite the former being viewed as a safe-haven asset. Surging oil prices have created concerns that inflation will reignite and keep interest rates higher. Higher rates weaken the appeal of the bullion, which is non-yielding. A stronger dollar as a result of the higher rates has also weighed on gold, as it cheapens the metal. Gold and silver both enjoyed record-smashing rallies in 2025, surging 66% and 135%, respectively, over the course of the year. However, they have seen much more volatile trade in 2026, with silver futures suffering their biggest single-day blow since the 1980s at the end of January. Paul Surguy, managing director and head of investment management and proposition at Kingswood Group, told CNBC in an email on Tuesday that gold has been "the beneficiary of a fair tailwind for some time," but that the broader backdrop may be encouraging investors to rethink their holdings of the metal. "Global markets have seen broad selloffs as investors search for the quickest assets to sell, perhaps we are now seeing the next leg of this phase where the perceived safe haven assets are sold to fund purchases of those that may have overacted to the current situation," he said. Silver -6% YTD Gold. +3% YTD