Gold slips below $4,000 as economic resilience cools rate-cut hopes

The precious metal settled near $3,975.20 an ounce, marking a 2.07% decline as the U.S. dollar climbed toward 100.7. While softer CPI and PPI reports earlier in the week initially fueled optimism for monetary easing, Thursday’s data shifted the narrative. With retail sales rising 0.2% and initial jobless claims dropping to 208,000, investors are increasingly pricing in the possibility of a September rate hike, pushing the 10-year Treasury yield above 4.57%.

This yield environment effectively neutralized the geopolitical premium typically provided by the ongoing volatility in the Strait of Hormuz. Although U.S. military strikes and Iranian retaliation have severely disrupted shipping, the inflation-rate channel proved more influential for gold prices. Silver followed a similar trajectory, falling 3.93% to $55.39 as it breached key support levels. Technical analysts noted that both metals now face significant near-term pressure, with gold bears targeting the $3,930 support zone should the current momentum persist into next week's central bank communications.