The broader market reaction was dominated by persistent inflation fears and a firmer U.S. dollar. With Brent crude pushing above $100 per barrel following attacks on Saudi oil tankers in the Red Sea, investors pivoted away from non-yielding bullion. The 10-year Treasury yield hovered near 4.7%, signaling that traders are pricing in a more hawkish outlook despite recent economic indicators. The latest jobless claims fell to 187,000, a level unseen since 1969, reinforcing the narrative that the Federal Reserve may maintain a restrictive stance at its upcoming July 29 policy decision.

Technically, the momentum shifted decisively in favor of bears as gold slipped below its 100-period moving average of $4,083. Silver faced similar pressure, falling 3.46% to $57.64 after failing to sustain a breakout above $60.75. Markets are now bracing for Friday’s flash PMI data, which will serve as a critical gauge for whether the cooling hiring momentum can prevent further tightening. For gold, the immediate path remains fragile; a failure to reclaim $4,075 could invite deeper selling pressure toward the $4,020 support mark.