Gold, Silver Extend Losses As Strong US Data Dims Rate-Cut Hopes
Gold and silver prices fell in international markets on Monday, extending steep losses from last week as strong US economic data prompted investors to dial back expectations of near-term interest rate cuts and as rising oil prices shifted attention away from bullion.Gold futures on COMEX were trading at USD 4,334.50 an ounce, down USD 30.80, or 0.71 per cent, while silver slid 2.49 per cent to USD 67.39 an ounce.
The declines followed a sharp correction last week, when gold shed nearly 5 per cent and silver dropped about 9 per cent, after stronger-than-expected US labour market data pushed Treasury yields higher and reduced bets that the Federal Reserve would ease monetary policy soon.
Market sentiment remained cautious on Monday, with investors bracing for interest rates to stay elevated for longer. Higher borrowing costs tend to weigh on non-yielding assets such as gold and silver, reducing their appeal relative to interest-bearing investments.
Broader financial markets also added pressure. Asian equities fell, led by losses in technology stocks, while the US dollar strengthened and Treasury yields stayed high, creating further headwinds for precious metals.
At the same time, geopolitical tensions in West Asia lifted oil prices, drawing investor focus toward energy markets. Brent crude rose above USD 95 a barrel after Israeli strikes on Beirut and subsequent missile attacks by Iran, stoking concerns about supply risks and persistent inflation that could keep global monetary policy tight.
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