Gold, silver, and Bitcoin prices plummeted following the Federal Reserve's latest policy meeting, where officials signaled a more hawkish stance on interest rates. The Fed held its benchmark interest rate unchanged at 3.5%-3.75% but indicated only one rate cut is expected this year, down from two in prior forecasts. This recalibration of expectations has triggered a sell-off in assets perceived as safe havens, as higher interest rates typically make these non-yielding investments less attractive.
Spot gold fell 5.5% on March 19th, marking its seventh consecutive daily decline, while silver prices also experienced a sharp downturn, falling to $70 per ounce. Bitcoin, which has increasingly been viewed as a store of value similar to gold, also slid following the Fed announcement. Market analysts suggest that Bitcoin could decline further relative to gold.
The stronger dollar and rising Treasury yields, driven by the Fed's outlook, are adding further pressure on precious metals. The dollar index is nearing 99.9, while Treasury yields have climbed to 4.2%, creating headwinds for gold and silver. Concerns about elevated energy costs and geopolitical tensions in the Middle East, particularly attacks on energy infrastructure in Iran and Qatar, are also weighing on market sentiment.
Some analysts believe that Bitcoin could fall to $67,000 or even $50,000 at some point in 2026. However, other analysts point out that this might be a multi-asset pullback phase rather than an isolated equity event.
