Gold and Silver Prices Drop Ahead of US CPI Report
Gold and silver prices declined on Tuesday ahead of this week's US Consumer Price Index (CPI) report. The precious metals market is focused on inflation dynamics as investors await Wednesday's CPI release, which is expected to show a moderate year-over-year increase in inflation to 3.4% from 3.5%. Spot gold hovered near $4,386.30 per ounce, down 0.04%, while spot silver traded at $65.090, down 0.78% on the day.
The market positioning reflects a standoff between soft employment figures and resurgent inflation worries. The probability of a September Fed rate increase has climbed to 51.9% following the latest rebound in crude prices. The 10-year Treasury yield remains around 4.74%, not far from its strongest reading since January 2025, while the dollar index holds steady near 99.834.
The Strait of Hormuz continues to be a central geopolitical variable for both metals and energy. Oil advanced on Monday after Iran conditioned any full reopening of the waterway on US concessions, while Washington introduced additional compensation requirements that complicated negotiations. Brent crude briefly surpassed $90 a barrel on Tuesday before retreating, and U.S. crude stayed near the $82 level.