Spot gold hovered near $4,007.10 an ounce, failing to break through the stubborn $4,020 to $4,040 resistance band that has stifled recent recovery attempts. Silver managed a 0.80% gain to reach $56.27, yet the metal remains well below the critical $58.53 reaction zone. The broader market landscape remains defensive, with North American and European equities retreating as investors weigh the impact of rising oil prices on inflation and corporate earnings.

Economic indicators are complicating the Fed policy outlook, with recent retail sales and jobless claims data tempering expectations for an immediate pivot. This environment has pushed the 10-year Treasury yield above 4.60%, fueling a stronger dollar that limits the upside for non-yielding bullion. Simultaneously, instability in the Strait of Hormuz and Red Sea shipping lanes keeps energy markets volatile, forcing traders to balance geopolitical hedging against the reality of a higher-for-longer interest rate environment.