Spot gold and silver prices fell sharply after Tuesday’s session, as the U.S. dollar remained near its strongest level of the year, Fed rate-hike risks stayed in place, and the Strait of Hormuz risk premium continued to unwind.

At the time of writing, spot gold was trading around USD 4,123 per ounce, down 1.64%. Meanwhile, spot silver dropped 5.45% to around USD 61.545 per ounce.

Stronger Dollar and Fed Expectations Weigh on Metals

The main pressure on precious metals continues to come from post-Fed positioning. Markets are no longer treating the Federal Reserve as a near-term source of policy easing. Instead, investors are pricing in a backdrop of resilient U.S. economic data, a firmer U.S. dollar, and real interest rates that remain restrictive.

This environment is negative for gold and silver, as higher interest rates and a stronger dollar typically reduce the appeal of non-yielding assets such as precious metals.

Hormuz Risk Premium Fades, Safe-Haven Demand Weakens

Risks surrounding the Strait of Hormuz have continued to ease as ship traffic increases through northern and southern routes. Iran has also agreed not to charge tolls for 60 days, although Tehran and Washington continue to dispute control and future fees.

The easing of energy supply risks has pushed crude oil prices lower, helping reduce inflation pressure. However, it has also weakened safe-haven demand for gold.

For silver, the impact is even more negative. Lower oil prices and softer industrial-risk pricing are pressuring silver’s cyclical side, while the stronger dollar continues to weigh on its investment appeal.

U.S. Stocks End Slightly Higher, but Leadership Remains Narrow

U.S. stocks finished with modest gains after an early risk-off session. The S&P 500 rose 0.02%, the Dow Jones Industrial Average gained 0.02%, while the Nasdaq Composite advanced 0.12%, supported by selective buying in technology shares.

However, market leadership remained narrow. Nvidia fell 3.2%, while Micron saw active trading ahead of its earnings report.

Outside Markets

WTI crude oil traded around USD 73.58 per barrel, while Brent crude was near USD 77.47 per barrel. The U.S. dollar index remained firm after testing a new 2026 high above 101 earlier in the session. The yield on the benchmark 10-year U.S. Treasury note stayed around the mid-4% area.

Technical Outlook for Gold and Silver

For spot gold, the nearest resistance zone is located around USD 4,180–4,200 per ounce. If gold breaks back above this area, the next upside targets are USD 4,221 and USD 4,319.

On the downside, key support is seen at USD 4,091. A break below this level could open the way for deeper declines toward USD 4,040, followed by USD 4,020.

For silver, the nearest resistance zone is located around USD 62.00–64.29 per ounce. If silver recovers above this zone, the next upside targets are USD 65.00–66.00, followed by USD 68.50.

On the downside, a break below USD 61.00 could extend selling pressure toward USD 57.00, followed by USD 56.00.

Conclusion

Gold and silver are under strong pressure from the firmer U.S. dollar, expectations that the Fed will maintain a hawkish policy stance, and weaker safe-haven demand as Hormuz-related risks ease. In the short term, markets will continue to monitor the U.S. dollar, Treasury yields, crude oil prices, and upcoming Fed policy signals to determine the next direction for precious metals.

📌 This content is for market insight sharing purposes only and does not constitute a buy or sell recommendation.

Source: Kitco