Dollar Rebound Sends Gold and Silver Prices Downward

Gold and silver prices struggled to maintain their momentum as the dollar regained some ground ahead of key inflation data. The precious metals weakened, with gold down 0.5% and silver giving back all its gains from yesterday, while copper took a sharper hit.

The market's willingness to put aside the 'dollar debasement' narrative has allowed the greenback to respond more conventionally to higher yields and oil prices. This shift is seen as negative for precious metals, which are now being treated as risk assets rather than alternatives to USD.

Oil prices rallied further above $100, and with the dollar's recent recovery, precious metals traders may be less inclined to rotate away from USD to gold.