Gold and Silver Retreat as Yields Climb and ECB Holds Rates

Spot gold dropped 1.52% to trade near $4,066.82, slipping below the $4,100 threshold and failing to clear the $4,148 resistance line. Silver followed suit, falling 2.75% to $58.06 after failing to sustain its breakout above $60.75. The sell-off reflects a shift in market sentiment, as the European Central Bank kept its benchmark rate at 2.25% and U.S. jobless claims fell to 187,000, signaling that the economy remains resilient enough to keep the Federal Reserve from pivoting to a dovish stance.

Energy volatility remains a critical headwind for investors. Brent crude has pushed past $98 a barrel, while WTI trades near $90, driven by military pressure in the Strait of Hormuz and fresh Houthi attacks on tankers in the Red Sea. This inflationary pressure is keeping the 10-year Treasury yield at 4.714%, eroding the appeal of non-yielding bullion. Traders are now focused on upcoming PMI data and further guidance from Fed officials to determine if the current technical weakness in precious metals will deepen or stabilize.