Spot gold is currently trading near $4,390.40 an ounce, a decline of 0.58%, while silver has fallen 1.17% to $64.89. The market remains caught between cooling U.S. growth data—including weaker retail sales and CPI figures—and the persistent threat of energy-driven inflation. With the 30-year Treasury yield hitting its highest point since 2007 at 5.3%, investors are recalibrating their positions in a supply-shock environment. Nohshad Shah of Citadel Securities noted that inflation currently has little room to breathe given the volatility in global energy supplies.

The situation in the Strait of Hormuz serves as a primary catalyst for this defensive shift. Following a projectile strike on a ship off the coast of Oman and the expiration of U.S.-Iran negotiation windows, energy markets remain on edge. Brent crude holds near $91, acting as a direct anchor on gold’s potential gains by fueling higher bond yields. As traders look toward upcoming housing data and Fed meeting minutes, the technical outlook for gold remains split: bulls are eyeing a resistance breakout at $4,448, while bears are testing a downside floor near $4,333.