Precious metals lose safe-haven momentum as US yields and the dollar rise
š” The global metals market showed clear divergence during the week of July 20ā25. Despite escalating USāIran tensions and risks around the Strait of Hormuz pushing oil prices higher, gold and silver failed to establish a sustained uptrend as US Treasury yields and the dollar strengthened.
š Gold briefly climbed toward $4,130 per ounce before retreating to around $4,050ā$4,070. The move suggests that the higher opportunity cost of holding non-yielding assets outweighed safe-haven demand, with the US 10-year yield reaching approximately 4.71% and the DXY approaching 101.5.
āŖ Silver was more volatile, rising close to $60 before correcting toward $58. Demand from solar energy, electric vehicles and electronics continues to support the longer-term outlook, but near-term price action remains highly sensitive to yields, the dollar and broader risk sentiment.
š Copper remained comparatively resilient at around $6.30ā$6.34 per pound, supported by structural demand from electrification, AI data centers and renewable energy. Among base metals, nickel held relatively firm, while lead and iron ore faced greater pressure from elevated inventories and weak Chinese steel demand.
š Many investors are now watching the $4,000ā$4,020 support zone for gold and $57ā$57.50 for silver. Holding these levels could preserve the current consolidation structure, while a decisive breakdown may extend the corrective move.
š Next week, metals will be heavily influenced by the July 28ā29 FOMC meeting, oil prices and developments around the Strait of Hormuz. Gold needs to reclaim $4,150 to improve momentum, while copper may continue trading within $6.20ā$6.50 per pound unless growth data weakens significantly.
#MetalsMarket $XAUT $XAG $COPPER
š” The global metals market showed clear divergence during the week of July 20ā25. Despite escalating USāIran tensions and risks around the Strait of Hormuz pushing oil prices higher, gold and silver failed to establish a sustained uptrend as US Treasury yields and the dollar strengthened.
š Gold briefly climbed toward $4,130 per ounce before retreating to around $4,050ā$4,070. The move suggests that the higher opportunity cost of holding non-yielding assets outweighed safe-haven demand, with the US 10-year yield reaching approximately 4.71% and the DXY approaching 101.5.
āŖ Silver was more volatile, rising close to $60 before correcting toward $58. Demand from solar energy, electric vehicles and electronics continues to support the longer-term outlook, but near-term price action remains highly sensitive to yields, the dollar and broader risk sentiment.
š Copper remained comparatively resilient at around $6.30ā$6.34 per pound, supported by structural demand from electrification, AI data centers and renewable energy. Among base metals, nickel held relatively firm, while lead and iron ore faced greater pressure from elevated inventories and weak Chinese steel demand.
š Many investors are now watching the $4,000ā$4,020 support zone for gold and $57ā$57.50 for silver. Holding these levels could preserve the current consolidation structure, while a decisive breakdown may extend the corrective move.
š Next week, metals will be heavily influenced by the July 28ā29 FOMC meeting, oil prices and developments around the Strait of Hormuz. Gold needs to reclaim $4,150 to improve momentum, while copper may continue trading within $6.20ā$6.50 per pound unless growth data weakens significantly.
#MetalsMarket $XAUT $XAG $COPPER