Spot gold traded at $4,591.70 per ounce, a 1.42% decline, while silver retreated 0.78% to $68.00. The market shift followed a July PCE reading of 3.7% year-over-year, surpassing consensus estimates and dampening the recent bond rally. With two-year yields climbing above 4.22% and the 10-year benchmark settling near 4.66%, the appetite for non-yielding assets has cooled significantly.

Technical indicators suggest gold remains in a delicate position. Prices failed to sustain momentum above the $4,630 resistance level, and the market is now reacting more aggressively to inflation surprises than to traditional fiscal-risk hedging. While geopolitical tensions in the Strait of Hormuz continue to simmer, the easing of supply-risk premiums in crude oil markets has further stripped gold of its immediate safe-haven appeal. Traders are now watching the $4,573 support level, as a breach could signal a deeper slide toward $4,500.