Spot gold and silver prices fell sharply in late-afternoon U.S. trading on Thursday as wholesale inflation and crude oil prices rose.
Spot gold and silver prices dropped significantly during late-afternoon U.S. trading on Thursday. Gold traded near $4,317.10 an ounce, down 1.90%, while silver fell 5.46% to $63.500.
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These price drops occurred as hotter wholesale inflation and a surge in crude oil prices overwhelmed safe-haven demand. The August PPI report showed a 0.4% monthly increase and a 5.4% annual increase, driven primarily by energy and diesel costs. Concurrently, and oil futures posted their steepest gains in nearly two months, with WTI crude settling at $102.48 a barrel and Brent crude reaching $107.63. Market conditions were further influenced by a jump in Treasury yields, with the 10-year Treasury yield reaching 4.943%. Fed-funds futures indicate a 71% probability of a 25 basis point rate hike next week. The Strait of Hormuz remains a key geopolitical channel for oil and inflation expectations, as tanker attacks and the seizure of the Yemen port of Mocha by Houthi forces increased risk to Red Sea traffic.