Price Pressures and Fed Pauses: Can Gold and Silver Weather the Storm? -

Gold and silver sold off sharply on Friday. The move was somewhat unusual because bond yields also dropped. This is typically supportive of gold.
So, what happened?
In this episode of the Midweek Memo, host Mike Maharrey explains the sell-off dynamics, why we could see more near-term selling pressure, and why he remains bullish on gold and silver in the long run.
He also covers the October Fed meeting, emphasizing that a rate-hike pause was the logical move given current economic dynamics.
But what's next?
Mum's the word! The Fed ain't talking!
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Mike opens the show with a bit of advice.
<blockquote>
"Never, ever, ever read the comments on social media posts."
</blockquote>
He says he tries to live by this mantra "because I am prone to wasting time in inane debates with people who don’t know what they’re talking about. It’s not a good use of time."
However, sometimes, he can't help himself.
<blockquote>
"The other day, I clicked on a response to one of my posts on X. It was an article about the selloff in gold and silver last Friday. The post read, “Why did gold sell off steeply on Friday, despite falling bond yields and a modestly weaker dollar? The commenter thought it was necessary to tell me that it was because algorithmic selling kicked in as gold fell below the $4,000 support level and, quote, 'The market doesn't care about your macro checklist.'
"Snarky, eh?
"And it’s almost like he didn’t read the article. Because there was no macro checklist, and I never indicated that the move was a macro move."
</blockquote>
But Mike concedes the guy wasn't wrong.
<blockquote>
"Markets don’t typically factor in macro dynamics. And that’s why the market often gets things wrong long term. Daily headlines move prices all over the place. Macro factors dictate long-term trajectories. For instance, it’s easy to look at rising oil prices, declare they are causing inflation, and anticipate the Fed will raise interest rates. That’s exactly what the markets have been projecting since the Iran war kicked off. But what about the debt? The Fed can’t just willy-nilly raise rates when a Debt Black Hole dominates the economy. You need that macro perspective to understand the complete picture. So, it’s fair to say the markets don’t care about my macro checklist today. But it damn sure will tomorrow, or at least at some point down the road."
</blockquote>
Mike says that when gold and silver started dropping on Friday, he told a coworker, "Gold is acting weird."
<blockquote>
"It sold off steeply Friday, despite falling bond yields and a modestly weaker dollar. Paradoxically, the mainstream continues to blame weakness in the gold market on inflation worries. So, investors are dumping their <a href="https://www.moneymetals.com/news/2024/06/18/golds-role-as-an-inflation-hedge-in-the-21st-century-003263">inflation hedge</a>. As I said, gold is acting weird. Or maybe it’s more accurate to say investors are acting weird. But perhaps we can make sense of it."
</blockquote>
Mike says some of the usual suspects were in play, including higher oil prices, the anticipation of more Fed rate hikes, and inflation worries.
<blockquote>
"However, the immediate catalyst for gold’s Friday selloff was most likely connected to the rout in tech stocks. The NASDAQ dipped 2.9 percent on Friday as poor earnings and growing concerns about excessive AI spending and debt sparked bearishness in the sector. The tech selloff also dragged down the S&P 500, which fell by 1.8 percent. Gold prices often fall in tandem with stocks during sharp corrections and in the early stages of a bear market, as investors liquidate winning gold positions to cover losses."
</blockquote>
That appears to be what happened Friday.
Mike says additional down days are likely.
<blockquote>
"I am medium-term bearish. It wouldn’t surprise me if gold tests $3,500. Meanwhile, silver is already around the $50 support. Several silver analysts I respect said they wouldn’t be concerned if it dipped below $45. However, the long-term bullish factors remain firmly in place. The debasement trade isn’t going anywhere, and the powers that be are going to continue devaluing your dollar. I see this correction and these headwinds as a buying opportunity."
</blockquote>
Mike then pivots to the Fed meeting, noting that the central bank put rate hikes on pause for the time being. That was widely expected. However, the markets were hoping for some forward guidance. Federal Reserve Chairman Kevin Warsh continued to insist that the central bank shouldn't and won't provide hints about the future trajectory of monetary policy in normal circumstances.
Mike said the biggest news from the Fed gathering was the change in future meeting schedules. 
<blockquote>
"Warsh said the FOMC will still meet eight times a year, calling it 'the right number for the FOMC.' However, one meeting next year will focus solely on strategy, and the committee will not make a rate-setting announcement. In 2028, the FOMC will move to two strategy sessions and six rate-setting meetings."
</blockquote>
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Mike calls market reaction to the Fed meeting "tepid."
<blockquote>
"I guess that makes sense since the central bank didn’t really do or say anything."
</blockquote>
Mike says it remains unclear why the Fed paused rate hikes given that CPI has been above the 2 percent target for 67 consecutive months. Some speculate it was to protect the stock market before the midterm elections.
We’ll never know if political considerations drove the decision, but there are 40 trillion good reasons to hold rates steady despite elevated price inflation.
<blockquote>
"Of course, I’m referring to the <a href="https://www.moneymetals.com/news/2026/08/20/the-40-trillion-national-debt-in-perspective-005151">national debt</a>. And that’s just one part of the massive <a href="https://www.moneymetals.com/news/2025/11/15/debt-black-hole-putting-increasing-stress-on-american-consumers-004483">debt black hole</a> dominating the U.S. economy. Debt-riddled economies don’t function well in a high-interest-rate environment."
</blockquote>
On the other hand, one can make a strong argument for rate hikes, given persistent inflation. 
<blockquote>
"This is <a href="https://www.moneymetals.com/news/2026/03/19/gold-the-federal-reserve-and-a-catch-22-004773">the Catch-22 the central bank has faced for months</a>, and there’s still no easy way out. It needs to cut rates to support the debt bubble, and it needs to raise rates to slay price inflation. It can’t do both. So, yeah, I guess a pause does make sense in this context."
</blockquote>
Mike says the Fed may nudge rates up again in December, but its hiking runway is getting shorter by the day. 
<blockquote>
"Ultimately, the economy is going to turn. If history is any indication, when push comes to shove, the Fed will choose more easy money despite elevated inflation to support the markets and the broader economy. This is bullish for gold in the long term."
</blockquote>
Mike wraps up the show with a quick overview of third-quarter gold demand, noting that he was surprised it remained relatively steady despite the persistent headwinds. 
Noting that gold and silver are on sale, Mike ends the show with a call to action, urging listeners to call 800-800-1865 to talk with a Money Metals precious metals specialist.
<h2>Articles Mentioned During the Show</h2>
<a href="https://www.moneymetals.com/news/2024/06/18/golds-role-as-an-inflation-hedge-in-the-21st-century-003263">Gold's Role as an Inflation Hedge in the 21st Century</a>
<a href="https://www.moneymetals.com/news/2026/11/03/gold-demand-steady-in-q3-supported-by-etfs-and-central-banks-005341">Gold Demand Steady in Q3 Supported By ETFs and Central Banks</a>
<a href="https://www.moneymetals.com/news/2026/10/31/steve-penny-on-silvers-next-bull-market-gold-forecasts-and-options-trading-005334">Steve Penny on Silver's Next Bull Market, Gold Forecast, and Options Trading</a>

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