Gold Slips Below $4000 on Stronger Dollar and Fed Signals, Silver Plunges 6.5%

Precious metals prices fell sharply after Wednesday’s close, with spot gold near $3,998 an ounce, down 2.73%, and silver at $57.47, off 6.5%. A firmer dollar and post-Fed rate repricing outweighed safe-haven demand tied to US-Iran tensions.

The Federal Reserve kept the target range at 3.50%–3.75%, stressing elevated inflation and signaling price stability. This reinforced higher-for-longer expectations, weighing on non-yielding assets, while gold futures hit their lowest level since November. Jim Krane of Rice University’s Baker Institute noted that “stocks are running low.”

Oil-supply fears eased as limited transits resumed through the Strait of Hormuz, sending Brent crude down 3.8% to $73.87 a barrel. The 10-year Treasury yield slipped to 4.41%, and US equities closed mixed. Analyst Muhammad Umair flagged key gold support at $3,950–$4,000 and resistance near $4,350.