Gold and Silver Prices Slump as Strong U.S. Data Boosts Dollar and Yields

Key Facts

Spot gold and silver prices traded sharply lower in late-afternoon U.S. trading on Thursday, marking a significant reversal in recent price action. According to reports, the decline was triggered by resilient U.S. economic data which bolstered the case for a stronger dollar and firmer Treasury yields. These macroeconomic headwinds effectively outweighed the support typically provided by geopolitical risks in the Strait of Hormuz and previous soft inflation readings, diminishing the appeal of non-yielding bullion.

The downward move aligns with a broader strengthening of the U.S. dollar against major peers, as market participants recalibrate expectations for the Federal Reserve's interest rate path. Per market data, rising yields increase the opportunity cost of holding precious metals, leading to synchronized selling across both gold and silver. This shift suggests that macro-monetary factors are currently taking precedence over safe-haven demand despite ongoing global uncertainties.

Looking ahead, investors are focusing on the upcoming U.S. Monetary Policy Report for further clarity on the Fed's stance. While specific closing prices are not currently available, the market remains sensitive to upcoming catalysts including a scheduled speech by Fed Governor Bowman on July 13, 2026. These events will be critical in determining whether the current bearish momentum persists or if the metals can find a floor near previous support levels.