Why Gold and Silver Prices Have Become Dislocated from Traditional Fundamentals

Gold prices (XAUUSD) and silver have become dislocated from traditional risk-on/risk-off relationships, with both metals at times rallying with equities and falling on equity weakness. The article attributes the disconnect to three main forces: an elevated U.S. dollar (DXY) near a 10‑month high, higher crude oil reducing near‑term demand and growth prospects amid the Middle East war, and concerns that sustained higher oil could trigger stagflation. The author remains constructive on the metals long term but expects choppy, sideways trading in the near term. He projects gold to oscillate between the January record high and the March low, and silver to trade in a wide $50–$95 range while the geopolitical situation unfolds.