Gold and Silver Fall Under Pressure from Strong Dollar and U.S. Data

Gold and silver prices declined sharply in Monday’s trading as strong U.S. economic data, rising Treasury yields, and a firmer U.S. dollar weighed heavily on precious metals despite ongoing geopolitical tensions. At the time of writing, spot gold was trading near $4,513, down over 2%, while spot silver dropped more than 3% to around $72.57 per ounce.

Recent U.S. economic data played a key role in this downward pressure. Factory orders for March rose by 1.5% to $630.4 billion, exceeding market expectations and signaling continued economic strength. Additionally, the ISM manufacturing PMI expanded for a fourth consecutive month, reaching 52.7 in April. These stronger-than-expected figures have reduced expectations for near-term Federal Reserve rate cuts, creating a bearish environment for gold.

Meanwhile, policy-sensitive markets added further pressure. The U.S. 10-year Treasury yield climbed to around 4.44%, while the U.S. dollar index strengthened. At the same time, oil prices surged, with WTI crude trading above $104 and Brent nearing $113 per barrel, driven by escalating tensions in the Middle East and concerns over the Strait of Hormuz. Rising oil prices have fueled inflation expectations, pushing yields even higher and further pressuring non-yielding assets like gold.

Traders are now closely watching upcoming U.S. labor market data and Federal Reserve signals to determine whether higher energy prices will delay or disrupt the expected monetary easing cycle. The release of the latest FOMC meeting minutes is also expected to provide further insight into the Fed’s policy outlook.

From a technical perspective, gold needs to break above the $4,530–$4,568 resistance zone to regain bullish momentum, while a drop below $4,502 could open the door for further declines toward $4,485 and $4,450. For silver, a move above the $73–$73.50 range could support further gains, whereas a break below $72.10 may lead to deeper losses toward $71 and $70.