Gold SWOT: Silver is entering its eighth deficit year, with inventories at all-time lows

By Frank E Holmes – KITCO

The best-performing precious metal for the week was gold, although it was still down about 1.34%. Despite escalating Middle East conflict, gold fell as the 10-year Treasury yield climbed 14 basis points, strengthening the dollar. Higher energy prices from the Iran conflict also reduced expectations for near-term Fed rate cuts, with the probability of a hold at the June meeting rising to 69% from 43% the prior week, removing a key tailwind for the metal.