Gold and Silver Retreat as Dollar Gains and Yields Weigh

Gold settled near $4,050.70 an ounce, a 1.27% decline that wiped out Thursday’s momentum. Silver followed suit, dropping 1.93% to trade near $57.75. While the week’s PCE inflation data initially offered a buffer for precious metals, the market’s focus shifted toward the 10-year Treasury yield, which held firm near the 4.7% mark. This yield environment, coupled with a resilient dollar, continues to create a difficult climate for non-yielding assets despite underlying economic uncertainty.

Geopolitical friction, particularly the ongoing disruptions in the Strait of Hormuz, provided a conflicting backdrop for traders. Rising oil prices—with Brent crude nearing $90.12 a barrel—helped buoy broader equity markets but simultaneously fueled inflation fears that keep interest rate pressure high. With the Federal Reserve maintaining a restrictive stance, traders are now looking toward upcoming labor data to gauge whether the central bank will finalize its current trajectory or risk further policy shifts in September.

From a technical perspective, the bears currently hold the near-term advantage. Gold remains trapped below its 50-period moving average of $4,058 and the 100-period average at $4,071. For bulls to regain control, the metal must decisively reclaim the $4,101 level. On the downside, market participants are closely monitoring the $4,018 support floor; a failure to hold this level would likely invite a deeper test of the $3,995 range.