Gold Falls 2.1% to $3,975, Silver Down 3.3% as Treasury Yields Rise on Thursday

According to Kitco, spot gold and silver fell sharply on Thursday as firmer Treasury yields, a stronger U.S. dollar and renewed Strait of Hormuz military risk weighed on prices. At the time of reporting, spot gold was trading near $3,975 an ounce, down 2.1%, while silver was trading near $55.90, down 3.3% on the session. Gold broke below the $4,000 support level for the first time in the current pullback.

Market sentiment shifted after this week's softer inflation data (headline CPI fell 0.4% in June, final PPI fell 0.3%) as stronger-than-expected economic data rebalanced rate expectations. Retail sales rose 0.2% in June, and initial jobless claims fell to 208,000, the lowest in 10 weeks, signaling economic resilience. The 10-year Treasury yield moved higher to 4.57%, while WTI crude and Brent rose to $80.70 and $86 respectively amid tensions in the Strait of Hormuz.