Spot gold dropped 1.76% to trade near $4,338.10 per ounce, while silver suffered a steeper 3.49% decline to $63.37. The selloff mirrored broader weakness in North American and European equity markets, where the Nasdaq Composite led losses with a 1.33% drop. Despite signs of cooling inflation from recent retail sales and CPI data, the 30-year Treasury yield remains anchored near 2007 highs, complicating the outlook for precious metals.

Geopolitical anxiety surrounding the Strait of Hormuz continues to loom over global energy markets, keeping Brent crude near $91 a barrel. While the U.S. government maintains that the strait remains operational, the threat of potential supply disruptions prevents a meaningful decline in inflation expectations. Traders are now shifting their attention toward the upcoming Federal Reserve meeting minutes and additional labor market data, seeking clarity on whether interest rates will remain elevated for the remainder of the year.