The latest CPI and PPI reports indicate a cooling trend in U.S. wholesale inflation, with final demand prices down 0.3% in June. This shift has tempered expectations for a hawkish Federal Reserve, pushing July rate-hike odds toward 10%. Despite this, bullion prices remain capped below a critical resistance band of $4,091 to $4,104, as higher crude oil prices—driven by the naval blockade and active conflict in the Strait of Hormuz—continue to fuel underlying inflation concerns.

While gold maintained its footing above the $4,000 threshold, silver struggled, slipping 1.52% to $57.68. The divergence reflects weaker momentum for the industrial metal, which failed to sustain a breach of the $58.00 level. Broad equity markets largely shrugged off the maritime volatility, with the S&P 500 and Nasdaq Composite closing higher as investors balanced the implications of lower yields against the rising cost of energy. Market participants are now looking to upcoming testimony from Fed Chair Kevin Warsh and any developments regarding the restricted shipping lanes to determine if gold can break its current technical ceiling.