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Gold and silver prices moved lower on Thursday as investors reacted to stronger US economic data, rising inflation concerns, and renewed expectations that interest rates in the United States could remain elevated for longer.
Gold slipped toward the $4,650 level after recently hovering near record highs above $4,700 per ounce. Silver also retreated sharply, falling below $84 after a powerful rally earlier this month that pushed the metal close to the $90 mark.
Strong US Data Boosts the Dollar and Pressures Metals
The decline in precious metals came as the US Dollar strengthened following upbeat retail sales figures and hotter-than-expected inflation data. Investors increasingly believe the Federal Reserve may keep its tough stance on inflation, reducing expectations for rapid interest-rate cuts.
Higher Treasury yields also added pressure on gold and silver, as investors shifted toward interest-bearing assets.
New Federal Reserve Leadership Adds Market Uncertainty
Markets are also watching the leadership transition at the US central bank after Kevin Warsh was confirmed to lead the Federal Reserve. The move has raised questions about the future direction of US monetary policy and whether the central bank will continue prioritizing inflation control over economic stimulus. This uncertainty has contributed to increased volatility across commodity and currency markets.
Silver Rally Still Supported by Industrial Demand
Despite the latest decline, silver remains one of the best-performing commodities this month. Analysts say the rally has been supported by strong investor demand as well as growing industrial use tied to electronics, renewable energy projects, and manufacturing. The strong performance of copper and other industrial metals has also helped support silver prices in recent weeks.
Geopolitical Risks Continue to Support Safe-Haven Demand
Ongoing geopolitical tensions and rising energy prices continue to keep investors on edge. Concerns over inflation, global growth, and supply chain disruptions are maintaining demand for traditional safe-haven assets such as gold and silver.
Although both metals have pulled back from recent highs, market sentiment suggests investors are still closely watching precious metals as protection against economic uncertainty and currency volatility.
