Gold prices dropped 1.4% on the Comex exchange, marking the second decline in three trading sessions. Silver fell harder, sliding 2.5% and down three of the past four sessions.
The losses reflect broader weakness in precious metals after a recent rally. Gold remains sensitive to interest rate expectations and dollar strength. When the Federal Reserve keeps rates higher for longer, investors shift away from non-yielding assets like gold. A stronger dollar also makes gold more expensive for foreign buyers, reducing demand.
Silver's steeper decline tracks a pattern typical of the industrial metal. It tends to fall faster than gold during risk-off periods because investors view it as more economically sensitive. Manufacturing weakness or recession fears accelerate silver selling.
Both metals face headwinds from solid U.S. economic data that bolsters the case for sustained higher rates. Traders will watch upcoming inflation reports and Fed communications for clues about future rate cuts. Any signs that the Fed pauses its tightening cycle could reverse these losses and reignite precious metals demand. For now, momentum favors the downside.