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Gold and silver poised for volatility as Fed, U.S.-Iran focus builds
Spot gold rose 1.6% to $4,139.6 per ounce and spot silver gained 1.9% to $59.9, even as investors balanced safe-haven demand with renewed inflation worries from higher oil prices.
Gold and silver are likely to stay volatile in the coming weeks as investors weigh escalating geopolitical tensions against expectations that the U.S. Federal Reserve could keep interest rates higher for longer, LiveMint Markets reported. Safe-haven buying has returned amid widening Middle East conflict, but higher crude oil prices are also reigniting inflation concerns, which can reduce expectations for near-term monetary easing.
The next key catalyst, according to LiveMint Markets, is developments in the U.S.-Iran conflict and signals from the Fed policy meeting next week. Analysts pointed to shifting rate expectations as a key driver for bullion, noting that the market is reacting to interest rate trajectory cues rather than only risk sentiment.
Bullion prices rebounded Wednesday, with spot gold up 1.6% to $4,139.64 per ounce after touching a two-week high, and U.S. gold futures for August delivery up 1.7% to $4,144.20. Spot silver rose 1.9% to $59.87 per ounce as investors reassessed geopolitical risks and looked for further direction on U.S. rates.
LiveMint Markets also highlighted that the metals recovery follows sharp selloffs earlier, with gold futures down a little over 2% last week and spot gold down around 3%, while silver saw a larger drop, including spot silver down nearly 8% and Comex silver futures down close to 6.6%. The report noted that crude oil surged nearly 13% during the week after repeated attacks, adding to the inflation push the precious metals investors are now weighing.
Latest closeGold $4,117.00 ▲1.1%|Silver $59.51 ▲1.1%|WTI crude $87.52 ▲3.1%