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Gold and silver slide as Middle East tensions stoke higher rate fears
Comex gold futures fell $74 to an intraday low of $3,977 per ounce, while silver dropped $1.80 to $55.65, with investors citing renewed US-Iran hostilities and expectations for tighter US policy for longer.
Gold and silver prices extended losses for a second straight session on Thursday, July 16, as escalating Middle East tensions reinforced expectations that the Federal Reserve could keep interest rates higher for longer, weighing on non-yielding assets, LiveMint Markets reported. Comex gold futures fell another $74 to an intraday low of $3,977 per ounce, slipping below the key $4,000 level after dropping $18 in the previous session. The article said a break below $3,955 could pull gold toward its lowest level in nearly eight months.
Silver, typically more volatile than gold, dropped another $1.80 to $55.65 per troy ounce, its lowest level since early December. LiveMint Markets pointed to renewed selling pressure after hostilities between the US and Iran escalated and revived concerns about tighter monetary policy.
The report linked the move to renewed conflict risk, saying the United States intensified its military campaign against Iran for a fifth consecutive day, targeting missile storage facilities and launch sites near the Strait of Hormuz. It added that Iran responded with missile and drone attacks on US allies in the region, warning its response could escalate further, while crude oil firmed with Brent trading above $85 per barrel.
Latest closeGold $4,067.10 ▲0.1%|Silver $58.13 ▼1.1%|WTI crude $80.18 ▲1.1%