Gold and Silver Prices Plunge Amid AI Sell-Off and Bond Yield Surge

Gold and silver prices plummeted in late-afternoon U.S. trading on Tuesday as heightened global bond yields and a renewed sell-off in AI-linked equities overshadowed support from a softer U.S. dollar and ongoing Strait of Hormuz risk.

The spot gold price dropped 1.76% to $4,338.10 an ounce, while spot silver fell 3.49% to $63.370.

North American equity markets closed lower, led by technology and semiconductor weakness, with the S&P 500 dropping 48.42 points, or 0.63%, to 7,696.64.

The latest positioning remains a tug of war between softer U.S. data and a higher-for-longer rates impulse from oil and long-end yields.