Comex gold futures fell $107 to trade near $4,050, while silver dropped $3 to break below the $60 mark, extending a multi-day selloff in precious metals.
The losses mark a second consecutive session of declines, driven by a strengthening US dollar and shifting risk sentiment amid renewed geopolitical friction in the Middle East.
Gold, which had briefly recovered to a one-week high of $4,063 earlier in the week on weak jobs data, has since reversed course as Treasury yields and hawkish Fed expectations reasserted pressure.
The dollar’s advance, fueled by safe-haven flows following US strikes on Iran, has weighed heavily on non-yielding assets.
Gold, which had briefly recovered to a one-week high of $4,063 earlier in the week on weak jobs data, has since reversed course as Treasury yields and hawkish Fed expectations reasserted pressure. The metal is now trading well off its recent highs, continuing a broader quarterly decline that has seen spot gold on track for its worst quarterly drop since 2013.
Market participants are now focused on the upcoming release of Federal Reserve meeting minutes, which could provide further clarity on the central bank’s rate path.
Any indication of persistent inflation concerns or a delayed easing cycle is likely to support the dollar further, adding headwinds for gold and silver.
The interplay between geopolitical risk premiums and monetary policy expectations remains the key driver for precious metals, with traders balancing safe-haven demand against the opportunity cost of holding non-yielding assets.