Precious Metals Slip as Front-End Yields and Hormuz Risks Offset Softer Dollar

Spot gold traded near 4160.80 dollars per ounce, down 0.24%, while silver fell 1.82% to 59.090 dollars. Traders reduced exposure ahead of the upcoming U.S. inflation report as front-end Treasury yields stayed firm and December Fed rate-hike odds remained elevated. U.S. and European equity indexes closed mostly lower. Markets priced a 19% chance of an October hike and 88% probability for December. The two-year Treasury yield rose above 4.81% even as the ten-year note eased toward 5.22%. Oil prices were mixed with Brent settling at 105.69 dollars per barrel and WTI at 94.14 dollars amid Hormuz supply risks. Gold faces resistance near 4217-4227 dollars while silver support lies around 58.74 dollars.