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 extended their losses Thursday as trading thinned across global markets, with U.S. financial markets shuttered in observance of the Juneteenth holiday.

The closure muted liquidity and activity, but it did little to stem the downward trend already weighing on precious metals after the Federal Reserve’s hawkish tone earlier in the week.

Spot gold slipped to roughly $4,154.70 an ounce, down about 1.28 percent, while silver dropped 1.35 percent to around $64.69.

Analysts said traders were retreating from metals amid a stronger U.S. dollar and persistent expectations that the Fed will keep interest rates higher for longer.

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The Fed’s latest decision to hold rates between 3.50 and 3.75 percent was unanimous, signaling policymakers are committed to fighting inflation that remains above the central bank’s 2 percent target.

The language echoed prior warnings that price pressures stem partly from lingering supply shocks, including those in energy markets.

In short, the rate backdrop remains the biggest drag on metals. Gold investors are painfully aware that higher real interest rates—when adjusted for inflation—typically suppress demand for non-yielding assets like gold.

The dollar index climbed to its highest point since May 2025, while the 10-year Treasury yield hovered near 4.5 percent before the holiday closure.

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Fawad Razaqzada, a market analyst at FOREX.com, said that gold’s momentum “remains bearish” in the near term. He pegged key support levels at $4,100, $4,023, and $4,000, the last being a psychological floor that traders are watching closely.

Razaqzada also identified resistance levels at $4,170, $4,200, and $4,300—levels bulls would have to reclaim to reverse sentiment.

Silver faces a similar technical outlook. Bulls are targeting a move back above the $65.00 to $66.00 range, with potential to push toward $68.00 or $70.00 if momentum returns.

But for now, downside targets are closer at hand: a drop below $64.00 could open the door to $63.18 and even $62.00.

Outside the metals market, oil prices offered a small source of strength to commodities. Nymex West Texas Intermediate crude traded around $77.56 a barrel, while Brent crude hovered near $80.23.

The modest firming follows a recent cooling of U.S.-Iran tensions, which had driven crude sharply higher earlier in the month. Traders are now assessing how quickly energy shipping through the Strait of Hormuz will normalize following the de-escalation.

The broader question for investors heading into next week’s trading is whether the Fed’s inflation caution will deepen.

The U.S. economic calendar features several data points capable of shifting market expectations, including flash manufacturing and services PMI data on Tuesday, new home sales Wednesday, and key Thursday reports such as GDP, durable goods orders, and personal consumption expenditures.

Gold’s technical picture remains tilted against the bulls. Bears will aim to push prices below $4,100, which could trigger short-term momentum toward $4,023 and even $4,000.

Bulls, by contrast, need to see prices reclaim $4,170 and then $4,200 to breathe life back into optimism. A sustained break above $4,300 would be the first meaningful sign of renewed buying.

Traders say the overall setup still favors caution rather than conviction. The absence of U.S. trading activity for Juneteenth means lower liquidity, which can exaggerate short-term price moves.

But the underlying forces—tight Fed policy, a robust dollar, and stubborn inflation—remain the same ones that have restrained gold and silver for weeks.

For many investors, the current environment illustrates how central bank policy can overshadow safe-haven demand. While geopolitical risks and inflation are typically bullish for metals, a Fed willing to hold rates high effectively neutralizes much of that upside.

Real yields continue to climb, cutting the appeal of storing wealth in non-yielding assets.

Some analysts suggest that the correction may create longer-term buying opportunities if inflation cools and the Fed eventually pivots.

For now, however, markets appear unconvinced that the central bank is ready to loosen its stance. Until that narrative begins to shift, precious metals are likely to remain on the defensive.

For both gold and silver traders, the next few weeks may hinge less on headlines and more on the numbers. If inflation data surprises to the downside or economic growth begins to stumble, the Fed’s tone could soften.

Until then, the metal markets seem destined to grind lower in the shadow of a stronger dollar and a policy path that favors restraint over risk.

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.