Gold and silver retreat sharply on higher bond yields and a stronger dollar, eroding safe-haven demand amid inflation concerns.
Gold prices fell nearly 2.5% to near $4,500 per ounce, while silver plunged about 9% to below $76 as rising U.S. yields and a stronger dollar weighed on non-yielding metals. The decline followed a week of volatility, with silver underperforming after a high-beta rally tied to industrial demand and AI-driven risk appetite.
Pressure stemmed from elevated oil prices reviving inflation fears, pushing yields and the USD higher. This overshadowed safe-haven demand, leaving gold at 4,540 levels with fading bullish momentum. Technical indicators show downside risks, with support at $4,452 and resistance at $4,670.
The outlook remains fragile unless yields stabilize or geopolitical risks ease. A potential reopening of the Strait of Hormuz could provide relief, but near-term sentiment is cautious.