Gold and silver prices drop as the US dollar strengthens and bond yields increase

Gold and Silver Prices Retreat Amid Stronger Dollar and Rising Yields

By midday Thursday, both gold and silver prices had declined, weighed down by a strengthening U.S. dollar and increasing yields on U.S. Treasury bonds. Earlier overnight gains, driven by safe-haven demand due to the ongoing conflict in Iran and heightened market uncertainty, were erased. April gold futures dropped $61.20 to $5,073.70, while March silver fell $1.598 to $81.10.

Venezuela and U.S. Reach Gold Export Agreement

According to reports from Axios and Bloomberg, the Trump administration and Venezuela’s state mining company have finalized an agreement allowing Venezuela to export up to 1,000 kilograms of gold to the United States. Under the arrangement, Minerven, Venezuela’s state-owned mining firm, will sell between 650 and 1,000 kilos of gold dore bars to commodities trader Trafigura. Trafigura will then supply the gold to U.S. refineries through a separate deal. This development follows a meeting between U.S. Interior Secretary Doug Burgum and Venezuela’s interim President Delcy Rodriguez, where they discussed mining reforms and mineral extraction strategies.

Other Market Highlights

Elsewhere, crude oil prices on the Nymex surged to a nine-month peak, trading near $79.50 per barrel. The yield on the 10-year U.S. Treasury note hovered around 4.148 percent.

Understanding Gold Pricing Mechanisms

Gold is priced primarily through two channels: the spot market, which reflects immediate purchase and delivery, and the futures market, which sets prices for future delivery. Due to year-end market positioning, the December gold futures contract is currently the most actively traded on the CME.

Technical Analysis: Gold and Silver Futures

Gold (April Futures)

• Bulls are aiming to close above the resistance level at this week’s high of $5,434.10.
• Bears are targeting a move below the support level at $5,000.00.
• Immediate resistance is at today’s high of $5,204.30, followed by $5,250.00.
• Initial support lies at this week’s low of $5,005.00, then at $4,900.00.
• Wyckoff’s Market Rating: 7.0

Silver (March Futures)

• Bulls are seeking a close above the resistance at this week’s high of $95.86.
• Bears are looking to push prices below the February low of $71.815.
• First resistance is at today’s high of $84.15, then $85.00.
• Support is found at this week’s low of $79.00, followed by $77.50.
• Wyckoff’s Market Rating: 5.0

Stay Informed with Market Insights

Subscribe to the “Markets Front Burner” weekly email for forward-looking market analysis and educational content to help you succeed in trading and investing. The newsletter is free and easy to join.