Comex gold and silver futures extended their decline for a second consecutive session on Thursday, July 16, as escalating tensions in the Middle East reinforced expectations that the US Federal Reserve may need to maintain higher interest rates for longer.
Gold prices dropped to an intraday low of $3,977, while silver fell to $55.65.
The sell-off reflects a shift in market sentiment where geopolitical risk is no longer acting as a safe-haven bid for precious metals but is instead driving inflation fears that weigh on real yields.
This marks a continuation of the pressure seen earlier in the week.
On Monday, July 13, gold and silver also extended losses as similar concerns over persistent inflation and the prospect of higher US rates took hold.
Prior to that, gold had fallen to $4,012 and silver to $57.84, marking a fourth consecutive session of losses driven by renewed tensions in the region.