Gold, silver sell off on inflation worries

Gold and silver are selling off sharply at midday Monday, with June gold down $56 to $4,731.70 and May silver down $2.46 to $74.03. Kitco attributes the weakness to failed weekend U.S.-Iran peace talks, which have revived inflation concerns and hurt demand for the metals even as traditional safe-haven support is in play. Outside-market pressure is also negative for bullion: WTI crude is higher near $101.50/bbl, the U.S. dollar index is firmer, and the 10-year Treasury yield is at 4.35%. Those conditions are consistent with a tighter macro backdrop for gold and silver, especially if energy-driven inflation keeps real-yield expectations elevated. Technically, gold bulls need a close above $5,000 to extend the uptrend, while bears are targeting a break below $4,500. Near-term support sits at $4,700 and then $4,626; resistance is at $4,800 and last week’s high of $4,888. For silver, bulls need a close above $80, while a loss of $61.21 would open the downside; immediate support is $72.50 and $69.78, with resistance at $75 and $77.80.