Gold settles lower, silver falls 4.5%

Gold bars

Gold and silver prices declined on Thursday, pressured by rising oil prices and a stronger US dollar following reports of one ship being detained and another sinking near the Strait of Hormuz. Investors also continued to monitor developments surrounding the US-China summit.

Gold futures for June delivery fell 0.45%, or $21.40, to settle at $4,685.30 per ounce.

Silver futures for May delivery dropped 4.47%, or $3.976, to $84.912 per ounce.

The decline coincided with a rise in the US dollar index, making dollar-denominated precious metals more expensive for holders of other currencies. Meanwhile, oil prices turned higher after reports that an Indian cargo vessel had sunk and another ship heading toward Iranian waters had been detained.

The CME FedWatch Tool also showed a sharp decline in expectations for Federal Reserve interest rate cuts after producer and consumer prices rose significantly in April, driven by higher energy costs.