Spot gold fell 2.4% to $3,890 an ounce and silver fell 2.8% to $50.19, with MCX December contracts also declining. The drop followed hotter US inflation, which left a December Fed hike almost fully priced, and initial jobless claims of 200,000 that were slightly above expectations.
Rising yields and a firmer dollar are the main drivers of the precious metals slide, with no direct effect on feed commodity supply. The next US producer price release is a key test for the Fed outlook and the dollar.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.