Recent economic data has reinforced expectations for higher interest rates, leading to a decline in the prices of gold and silver. The support from safe-haven demand due to geopolitical tensions has been overshadowed by robust U.S. economic indicators and signals from the Federal Reserve that interest rates will remain elevated for an extended period.

In early trading on Tuesday, COMEX gold futures were priced at $3,981.50 per ounce, down $57.40 or 1.42%, after touching an intraday low of $3,955.40. COMEX silver futures also fell 1.38% to $57.375 per ounce. In the previous session, gold had declined 0.43% to $4,078.80, while silver dropped 1.53% to $58.315.

The resilience and persistent nature of inflation in the U.S. economy have collectively increased market expectations that interest rates will stay higher for longer. The U.S. dollar index has maintained its strength, diminishing the appeal of non-yielding assets like gold and silver. Concurrently, diplomatic engagement between the U.S. and Iran has somewhat eased market risk aversion, reducing the demand for precious metals as a safe-haven investment.

Some analysis suggests that gold has breached the significant support level of $4,000 per ounce and may face further downward pressure in the near term. Silver has experienced a more pronounced decline recently, indicating it is under particularly strong selling pressure.