Gold prices slipped for a second consecutive session on Thursday, trading at around $3,740 per ounce after recently touching an all-time high of $3,790. Analysts attribute the decline to a rebound in the US dollar and rising yields on US Treasury bonds following the Federal Reserve’s latest monetary policy decision.
The greenback strengthened against major currencies, including the euro, British pound, Japanese yen, and Canadian dollar, adding pressure on bullion. Market watchers also flagged heightened volatility across global FX markets.
Meanwhile, yields on short-term US government securities climbed faster than longer-term bonds, trimming the steepening trend that had dominated this quarter. The 10-year Treasury note yield advanced toward 4.2%, bouncing from last week’s five-month low of 4%.
On the industrial metals side, silver surged above $44 per ounce, its strongest level in 14 years, supported by robust industrial demand and constrained physical supply, despite stronger US economic data bolstering the dollar.
Gold, however, retains long-term support, having risen 45% year-to-date, as global investors continue to seek safe-haven assets amid geopolitical tensions, fiscal concerns in Washington, and skepticism around Fed policy direction.
China remains a key player in the bullion market, with the People’s Bank of China (PBoC) expanding its gold reserves for ten consecutive months. Beijing has also positioned its infrastructure to serve as a custodian for foreign gold holdings, reinforcing demand.
Stronger-than-expected US economic data further influenced trading sentiment. The latest GDP revision showed an annualized growth of 3.8% in Q2, while durable goods orders outperformed projections. Additionally, jobless claims declined for a second straight week, easing concerns of a rapid labor market slowdown and dampening expectations for additional Fed rate cuts.
