Gold Stalls as Silver Surges Amid Rising Treasury Yields

Spot gold traded near $4,516.60 an ounce, reflecting a marginal decline of 0.12%, while silver outperformed with a 1.60% gain to reach $67.96. The divergence highlights a shift in investor sentiment as the 10-year Treasury yield climbed back toward 4.69%. Equity markets bore the brunt of the bond-market volatility; the Dow Jones Industrial Average dropped 703.84 points, and the S&P 500 fell 0.9% as the relief from Wednesday's Treasury buyback plan evaporated.

Economic indicators published Thursday painted a picture of resilient U.S. factory activity, with the Philadelphia Fed manufacturing index jumping to 47.4 in August. This strength, coupled with initial jobless claims falling to 206,000, complicates the Federal Reserve’s policy path. Geopolitical tension in the Strait of Hormuz continues to drive oil prices higher, creating a tug-of-war for gold: the metal draws strength from safe-haven demand, yet faces resistance from the inflation-linked rise in long-end yields. Traders are now shifting their focus to Friday’s flash PMI readings to gauge whether the economy can withstand further rate pressure.