Gold closes lower, silver drops 3%

Gold bars

Gold and silver prices declined on Thursday, pressured by a stronger US dollar and rising Treasury yields, amid concerns that inflation driven by Middle East tensions could keep interest rates higher for longer.

Gold futures for June delivery fell 0.61%, or $29, to $4,724 per ounce.

Silver futures for April delivery dropped 3.12%, or $2.428, to $75.465 per ounce.

The decline came amid fears of a breakdown in the ceasefire between the US and Iran following military skirmishes in the Strait of Hormuz, with US President Donald Trump stressing that no peace deal with Tehran would be reached unless it serves Washington’s interests.

A Reuters poll showed that the US Federal Reserve may wait at least six months before cutting interest rates this year.