Dollar Strength and Rising Yields Test Gold and Silver

Gold and silver prices are under pressure from a strong US dollar and rising Treasury yields. The spot gold price is trading near $4,280 an ounce, while silver remains below $64.

The U.S. 10-year Treasury yield rose to 5.18% on Thursday, making bonds more attractive than metals that pay no interest. A stronger dollar also makes gold and silver more expensive for buyers using other currencies.

Philadelphia Fed President Anna Paulson said further tightening may be needed, adding to the pressure on both metals.

The recent US data has had a negative impact on gold and silver prices, with jobless claims dropping to 197,000 and the September flash composite PMI rising to 58.4.