Gold and Silver Surge as Treasury Yields Retreat

Spot gold climbed 1.56% to trade near $4,168.70 an ounce, while silver rose 3.24% to $57.310. This recovery follows a sharp inflation-driven selloff on Wednesday, even as September producer prices surged 6.3% year-over-year—the largest monthly gain since March 2022. Despite the inflationary data, the 10-year Treasury yield dropped 10 basis points to 5.09%, marking its most significant daily decline since August 2025.

Equity markets mirrored this flight to safety. While technology shares remained volatile, the Dow Jones Industrial Average managed a 1.1% gain, bolstered by defensive sectors like health care and retail. European markets largely followed suit, though Italy’s FTSE MIB bucked the trend with a decline of 0.72%. Traders appear to be pricing in a lower probability of an October Federal Reserve rate hike, currently estimated between 29% and 34%.

Energy markets remain caught between supply disruptions and cooling demand. While Brent crude settled slightly lower at $105.92, U.S. WTI crude jumped to $96.50, fueled by inventory declines and hurricane-related production halts. The ongoing uncertainty surrounding the Strait of Hormuz continues to provide a floor for precious metals, as investors weigh the risks of regional conflict against the persistent threat of elevated energy costs feeding back into the broader inflation narrative.