Gold prices declined by nearly 1% during the session, falling below $4,800 after reaching a peak of $4,871, as improved risk appetite led investors to rotate funds toward US equities. The S&P 500 index surpassed the 7,000 mark and is poised to test its all-time high at around 7,014, further diminishing the safe-haven appeal of gold despite a generally weak US Dollar Index (DXY), which was down 0.06% to 98.05, just above its six-week low of 97.96 [1]. The US 10-year Treasury yield rose by three basis points to 4.275%, supported by expectations that the Federal Reserve will not cut interest rates this year, creating a headwind for bullion prices [1].
Geopolitical developments also influenced market sentiment. Speculation grew that talks between the US and Iran could end the ongoing conflict, following comments from US President Donald Trump suggesting the war was close to over and hinting at significant developments in the coming days. However, tensions remain elevated due to the US blockade of the Strait of Hormuz, though Reuters reported that Iran may allow ships to pass through the Omani side of the Strait as part of a potential deal [1].
On the data front, the US Producer Price Index (PPI) for March rose to 4%, below the expected 4.6%, largely driven by a 15.7% increase in gasoline prices. This 'hot' PPI reading has reinforced expectations that the Federal Reserve will not cut rates in 2026, with money markets pricing in just eight basis points of easing toward the end of the year, according to Prime Market Terminal [1]. Fed officials, including Beth Hammack of the Cleveland Fed and St. Louis Fed President Alberto Musalem, indicated that rates are likely to remain unchanged for an extended period, with Musalem noting that high oil prices could keep inflation nearly a percentage point above the Fed’s 2% target for 2026 [1].
Silver prices also saw a pause in their recent rally, with XAG/USD stalling near $79.09 as a doji candle signaled trader indecision. At the time of writing, silver traded at $79.38, down 0.12%. The technical outlook suggests that a bullish resumption would require clearing the day’s high at $81.00, with further resistance at $82.55 and $90.01. Conversely, a close below $79.00 could open the path to support around $75.00-$75.20. The Relative Strength Index (RSI) remains above neutral but has flattened, indicating a loss of bullish momentum [2].
Both gold and silver are influenced by interest rate expectations, US dollar movements, and geopolitical developments. While gold is currently pressured by rising yields and improved risk sentiment, silver’s price action reflects technical indecision and the broader macroeconomic environment [1][2].
CONCLUSION
Gold prices have retreated below $4,800 amid rising risk appetite and expectations of steady Federal Reserve policy, while silver's rally has stalled near $79 as traders await further direction. Both metals remain sensitive to interest rate outlooks, inflation data, and geopolitical developments, with upcoming economic releases and central bank commentary likely to shape near-term market moves.