Gold and silver prices have taken a sharp correction today, with the yellow metal falling by over $100 and the white metal down by around 3%. The US dollar has been broadly supportive throughout the day, with the DXY index reaching its highest level in over a week. This strength in the dollar has put pressure on precious metals, which are often viewed as alternative stores of value when the greenback is strong.

In Asia, there was some light physical demand for gold, but it was consistently offered throughout the day. Silver, on the other hand, saw little to no interest from buyers. This lack of demand has contributed to the sharp price drop in both metals. It’s worth noting that gold ETF holdings did see a small increase of 0.06 million ounces, while silver ETF holdings rose by 1.4 million ounces.

Oil prices have also been in focus today, with Brent crude trading near $107.50 after reaching a daily high above $108. Rising energy prices are gaining attention ahead of tomorrow’s US CPI data release. The recent surge in oil prices has been driven by a combination of factors, including geopolitical tensions in the Middle East and increased demand from emerging markets.

Despite today’s correction, gold and silver remain well-supported by fundamental factors such as central banks’ increasing interest in gold reserves, growing investor appetite for safe-haven assets, and the ongoing devaluation of fiat currencies. The long-term outlook for precious metals remains positive, with many analysts predicting further gains in the coming years.