Spot gold dropped 1.28% to trade at $4,109.90 an ounce, while silver suffered a steeper decline, falling 2.55% to $59.670. The sell-off mirrored a broader retreat in equity markets, where the Dow Jones Industrial Average shed 341.41 points and the S&P 500 dipped 0.2%. Investors are recalibrating their expectations after the Federal Reserve indicated that most officials still favor further tightening before the year concludes, despite a cooling labor market that saw only 29,000 jobs added in September.
Gold and Silver Tumble as Fed Hints at December Rate Hike
Spot gold and silver prices took a sharp dive in Wednesday’s late U.S. trading as Federal Reserve minutes signaled that a year-end interest rate increase remains firmly on the table. The hawkish outlook, combined with a stronger dollar and rising long-term Treasury yields, pressured non-yielding assets across the board.
Market focus has now shifted to upcoming economic indicators, including weekly jobless claims and September CPI data, which will serve as a litmus test for the Fed’s policy path. While a recent $39 billion auction of 10-year notes provided a temporary floor for bond yields, the 10-year Treasury yield remains elevated near 5.28%. Meanwhile, the geopolitical situation in the Strait of Hormuz continues to loom over energy markets; despite 12 reported tanker attacks in early October, oil prices settled lower as traders anticipated stable flows, momentarily dampening the inflationary impulse that has bolstered gold’s defensive appeal.
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