Gold and Silver Slide as Strong U.S. Data and Rising Yields Weigh on Metals

Gold and silver prices declined sharply on Monday as stronger-than-expected U.S. economic data and rising Treasury yields dampened investor demand for precious metals. The pressure came despite heightened geopolitical tensions and a spike in oil prices.

Spot gold was trading around $4,513.70 per ounce, down 2.16%, while spot silver fell 3.53% to $72.57. During the session, gold fluctuated between $4,502.40 and $4,630.70, while silver moved within a range of $72.10 to $76.12.

The decline in metals followed upbeat U.S. economic indicators. Factory orders for March rose 1.5% to $630.4 billion, significantly exceeding the 0.5% market expectation. Shipments also increased by 1.4%, while inventories rose 0.6%. This stronger data reduced expectations for near-term interest rate cuts, which typically support gold prices.

Adding to the pressure, U.S. manufacturing activity expanded for the fourth consecutive month in April, with the ISM manufacturing PMI coming in at 52.7—further signaling economic resilience.

Meanwhile, the 10-year U.S. Treasury yield climbed to around 4.44%, rising about 6.5 basis points on the day. A stronger U.S. dollar index, up 0.32% to 98.472, also weighed on gold and silver, making them more expensive for global investors.

Oil prices surged amid escalating tensions in the Middle East. WTI crude traded near $104.88 per barrel, while Brent crude rose nearly 5.8% to around $113.56, driven by concerns over potential disruptions in the Strait of Hormuz. Rising oil prices have fueled inflation worries, which in turn pushed bond yields higher—further pressuring precious metals.

Market participants are now closely watching upcoming U.S. labor market data and Federal Reserve communications for signals on the future path of interest rates. The minutes of the late-April Federal Open Market Committee (FOMC) meeting are expected on May 20, which could provide further clarity on monetary policy.

From a technical perspective, gold faces immediate resistance between $4,530 and $4,568, with stronger upside targets at $4,615 and $4,630.70. On the downside, support lies at $4,502.40, followed by $4,485 and $4,450.

For silver, resistance is seen between $73.00 and $73.50, with further upside targets at $75.00 and $76.12. Key support levels are at $72.10, followed by $71.00 and $70.00.

Disclaimer: The information provided in this article is for general informational purposes only. While we endeavor to keep the information up to date and correct, News Setu makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, or reliability of the content. Any reliance you place on such information is strictly at your own risk.