Gold and Silver Slide as Geopolitical Tensions Spike Oil Prices

Spot gold dropped 0.73% to $4,074.70, failing to sustain momentum above the $4,200 threshold, while silver saw a steeper 2.85% retreat to $58.13. The rally in energy markets followed U.S. accusations that Iran struck three commercial vessels, leading President Donald Trump to declare the ceasefire over. WTI crude climbed 6.45% to $74.93, while Brent crude gained 6.18% to $78.73, fueling inflation fears that pushed the 10-year Treasury yield to 4.5812%.

This repricing of rate expectations overshadowed the initial optimism surrounding June employment data, which had previously suggested a cooling labor market. As the U.S. dollar index climbed to 101.18, technical indicators shifted in favor of the bears. Gold now faces a critical test at $4,041.65, while silver struggles to hold above its recent support levels, with industrial-risk pressure widening the spread between the two metals.