DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Gold and silver prices tumbled in late U.S. trading Thursday as rising Treasury yields, a firm dollar and expectations for additional Federal Reserve interest rate increases battered the precious metals market. Gold extended its retreat below $3,900.00 an ounce, while silver suffered the steeper percentage loss.

Spot gold traded near $3,876.40 an ounce, down $110.60, or 2.77%. Spot silver stood near $49.930, a decline of $1.610, or 3.13%.

The losses came as investors reassessed how long restrictive monetary policy may remain in place. Silver also faced renewed concerns about industrial demand and volatility across equity markets.

Thursday’s U.S. economic reports showed resilient employment conditions alongside continued weakness in sectors sensitive to interest rates. Initial jobless claims increased to 200,000 in the week ended Nov. 7, compared with expectations near 195,000, but remained consistent with relatively limited layoffs.

October existing home sales dropped 5.5% to a seasonally adjusted annual rate of 3.75 million. That was the weakest pace since August 2010, with mortgage rates above 7% restraining demand.

The housing report followed Tuesday’s stronger than expected consumer inflation reading. Headline prices rose 0.4% in October, while core prices increased 0.3%.

Combined with the stronger employment report released last week, the figures indicated that elevated borrowing costs were restricting housing without producing sufficient inflation relief. That combination kept market attention firmly fixed on the possibility of further Federal Reserve tightening.

Late session futures assessments showed an approximately 85% probability of a 25 basis point increase at the Dec. 8 to 9 meeting. The probability of a 50 basis point increase stood at 15%.

Treasury yields climbed sharply as investors prepared for monetary policy to remain restrictive for longer. The benchmark 10 year yield reached approximately 5.102%, while the two year yield rose to 4.862%.

The firm dollar compounded the pressure on gold and silver. The next major inflation test is Friday’s October producer price index, scheduled for release at 8:30 a.m. EST.

Another upside surprise in producer prices could reinforce expectations for aggressive tightening. Softer prices could provide some relief to Treasury yields and precious metals.

Geopolitical uncertainty remained elevated as the confrontation involving the Strait of Hormuz, the United States and Iran continued. President Donald Trump indicated that Washington was no longer interested in pursuing a negotiated settlement with Tehran, a shift from earlier indications that additional U.S. military strikes were unlikely.

Commercial shipping through the strategic waterway remained heavily restricted. Disagreements involving Iran’s nuclear program, sanctions, the U.S. naval blockade and maritime security were unresolved, and no comprehensive agreement had been reached.

The uncertainty supported underlying defensive demand for gold, but it also pushed energy prices higher. Rising oil costs threatened to reinforce inflation expectations and strengthen the case for additional Federal Reserve tightening.

Nymex WTI futures advanced approximately 2.6% to $88.74 a barrel, while Brent crude gained about 3.3% to $95.82. The rebound came despite reported increases in U.S. petroleum inventories, demonstrating the continuing influence of geopolitical developments on energy prices.

North American equities ended lower after a volatile session shaped by uncertainty surrounding Nvidia’s leadership and renewed concerns about technology valuations. Jensen Huang, who cofounded Nvidia, resigned as chief executive, triggering a sharp decline in the company’s shares before the losses moderated.

The Dow Jones Industrial Average fell approximately 0.4% to 52,297.09. The S&P 500 and Nasdaq Composite each lost around 0.4%, closing at 7,592.40 and 25,366.09, respectively, while the Russell 2000 dropped 1.7% to 2,799.06.

Canadian equities also weakened as losses in technology and precious metals shares weighed on sentiment. The S&P/TSX Composite Index closed at 36,137.19, down 0.75%, although energy producers received some support from recovering crude prices.

European markets performed better than Wall Street. The Stoxx 600 gained approximately 0.2%, Germany’s DAX rose around 0.5%, France’s CAC 40 added approximately 0.3%, and the U.K.’s FTSE 100 advanced roughly 0.3%.

Technically, gold bulls are seeking a recovery above resistance between $3,896.00 and $3,944.00, followed by targets at $3,992.00 and $4,022.00. Bears are focused on a break below the session low of $3,852.10, with additional technical support published at $3,830.33.

Silver bulls need to reclaim resistance between $50.120 and $51.140 before targeting $52.390 and $53.430. Bears are targeting a break below the session low at $49.590, while no deeper downside objective was independently established in the available same day named analyst reports.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.