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Gold and silver stay volatile as US-Iran tensions shape rate bets

Comex silver rose 1.3% to $57.75 per ounce, while Comex gold steadied around $4,000 after last week’s 2.1% decline.

Reported · Written up by our desk · Precious Metals

Gold and silver prices stayed volatile on Monday, July 20, as escalating US-Iran clashes over the weekend were followed by reports of renewed diplomatic efforts, leaving the near term outlook for precious metals uncertain. LiveMint Markets said investors were also weighing how the conflict could affect crude oil, inflation, and global monetary policy.

The outlet said geopolitical uncertainty can support safe haven demand, but renewed US-Iran tensions also increase the odds that the Federal Reserve keeps interest rates higher for longer, which can cap gold and silver after a brief recovery earlier in the month.

According to LiveMint Markets, near month MCX gold futures in India rose ₹1,300 to ₹142,287 per 10 grams. Comex gold futures steadied around $4,000 per troy ounce after declining 2.13% last week and extending a losing streak to a second consecutive week, while Comex silver futures gained 1.3% to $57.75 per ounce.

LiveMint Markets added that oil prices had climbed earlier in the session to a more than one month high but later pared gains after Iran’s Foreign Ministry said negotiations with the United States could continue if they aligned with Iran’s national interests. The article also noted ongoing strikes, inflation concerns from elevated crude, and that gold is still more than 25% below its January peak, while silver is 53% below its January high of $121 per ounce.

Latest closeGold $3,981.40 ▼1.6%|Silver $55.72 ▼2.4%|WTI crude $79.00 ▼0.8%

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