Gold and Silver Soar Up to 2% Amid Rising Inflation Fears Following New US Strikes on Iran, Diminishing Peace Prospects.
Gold prices experienced a decline on Thursday, largely driven by heightened geopolitical tensions following fresh U.S. strikes on Iran. Spot gold fell by 0.8%, settling at $4,419.60 per ounce, while June U.S. gold futures decreased by 0.7%, reaching $4,417.10. Other precious metals such as silver, platinum, and palladium also recorded declines, exacerbated by a strengthening U.S. dollar that rendered dollar-denominated bullion costlier for investors holding other currencies. This market reaction underscores the interplay between geopolitical events and commodity pricing, particularly within the precious metals sector.
The U.S. military’s targeted strikes in Iran, aimed at mitigating perceived threats to American forces and commercial shipping, have added a layer of uncertainty to the economic landscape. Investors are now on high alert as they await the impending release of the U.S. Personal Consumption Expenditures (PCE) data, a key indicator of inflationary trends. Federal Reserve officials, including Governor Lisa Cook and Vice Chair Philip Jefferson, have indicated that while current monetary policy remains appropriate, inflationary pressures from tariffs and geopolitical conflicts may necessitate adjustments in short-term interest rates. This backdrop sets the stage for potential volatility in both gold and broader equity markets.
From a technical standpoint, gold is consolidating within the $4,500–$4,540 range, maintaining a cautious outlook. Immediate resistance is noted at the $4,560–$4,600 zone, and a sustained breach above this level could signal a stronger upward momentum, potentially pushing prices towards the $4,660–$4,700 range. Conversely, if gold breaches the immediate support level of $4,500–$4,460, corrective weakness towards $4,400–$4,350 may ensue. Market sentiment remains tentative, and sustaining above the support level is critical to maintain bullish prospects for gold prices moving forward.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)