Dollar Strength Caps Post-Fed Rebound in Gold and Silver

Gold and silver prices declined ahead of the North American market open on Friday, as a stronger US dollar and higher Treasury yields put pressure on precious metals. Spot gold was trading near $4,057.10 an ounce, down 1.11%, while spot silver was trading near $57.77, down 1.90% on the session.

The Federal Reserve held rates steady in the 3.50% to 3.75% range by a 9-3 vote, leaving September hike risk alive. Thursday's data showed US real GDP rose at a 1.5% annualized rate in the second quarter, down from 2.1% in the first quarter. The data support the case for a hold, but inflation remains above target and the 10-year Treasury yield was near 4.67%, leaving gold capped by real-rate pressure and a firmer dollar.

The Strait of Hormuz situation is severely disrupted transit under active military and shipping pressure, not a normalized operating environment. The U.S.-Iran conflict has impaired petroleum shipments through the strait for months, while Red Sea and Gulf shipping risks continue to keep a premium in crude and refined products. WTI crude traded near $85.46 in early US trade.