Gold Prices Drop Amid Rising Oil Prices, Firmer Yields
Gold and silver prices declined in late U.S. trading Thursday due to rising oil prices and firmer Treasury yields. Spot gold was trading near $4,243.40 an ounce, down 0.07%, while spot silver was trading near $61.520, down 0.64%. The uptick in oil prices followed a potential deal on shipping routes through the Strait of Hormuz.
The agreement between Iran and Oman has yet to be finalized, but if it gives Tehran formal control over commercial navigation, it could impact global markets. As a result, investors took profits from gold's recent breakout rally, leading to lower prices in both metals.
Michele Schneider, chief market strategist at MarketGauge, attributed gold's recent rise to a growing lack of investor confidence, which the yen intervention helped spark. With the Fed's rate expectations still uncertain ahead of Friday's payrolls print, real-yield pressure remains in the gold market.