Gold Nears $4,170 as Silver Climbs 3% on Bond Rally

Gold and silver prices surged sharply Thursday evening amid falling Treasury yields, a weaker dollar and fresh safe-haven buying. Gold traded near $4,168.70 an ounce, up 1.56%, while silver reached $57.310, gaining 3.24%, rebounding from Wednesday’s selloff. Stronger producer inflation data failed to halt the bond rally driven by AI-debt concerns.

US and European equities mostly closed higher, with the S&P 500 rising 0.3%, the Dow adding 1.1% and the Stoxx Europe 600 gaining 0.3%. The 10-year Treasury yield dropped 10 basis points to 5.09%. Traders priced a October Fed rate hike at only 29-34% probability.

Oil prices diverged with WTI at $96.50 and Brent at $105.92. Ongoing tensions around the Strait of Hormuz bolster gold, while technical resistance for gold sits near $4,181 and support near $4,161.