Gold prices end $16 lower; silver falls 4.8%

Gold prices finished in the red today, May 11, as investors assessed prospects for continued monetary policy tightening by the Federal Reserve.

The yellow metal prices were hurt today by the US dollar recovery. This is in addition to the release of some economic readings in US and China that dented the non-yielding asset's appeal.

According to Minneapolis Fed President Neel Kashkari, an extended period of high-interest rates and an inverted yield curve could further stress banks. It would, however, be necessary if inflation remains stubbornly elevated.

Today's data revealed that the US Producer Price Index, a measure of prices for final demand goods and services, advanced 0.20% in April from the prior month, and 2.30% from a year earlier — the slowest gain since January 2021 and slightly lower than expected.

Elsewhere, Labor Department data showed that initial jobless claims added 22,000 applications to a seasonally adjusted 264,000 in the week ended May 6 — the highest level since October 2021.

In terms of trading, bullion for June delivery tumbled 0.80%, or $16.60, to close at $2,020.50 an ounce, after hitting an intraday high of $2,047.60 per ounce.

Similarly, silver futures for July delivery plunged by 4.80%, or $1.23, to end at $24.42 an ounce, posting the largest daily percentage drop since Feb. 3.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, climbed 0.60% to reach 102.07 points at 08:45 pm Makkah time