LATEST MARKET NEWS ON GOLD & SILVER

Why Isn’t The Iran War Lifting Metals Prices?

Though gold and silver prices typically rise in price during periods of international conflict, neither metal has made gains throughout the nearly three-week war in Iran. Analysts from Sucden Financial said Wednesday metals prices are trading “in negative correlation with oil” as oil and energy prices surge. The analysts said precious metals prices will likely “remain choppy,” adding, “bullion may find some support from geopolitical uncertainty, but as long as oil absorbs the main safe-haven bid, upside will likely remain constrained.” Oil prices have surged in recent weeks, with Brent crude oil prices spiking about 5% past $109 on Wednesday, marking more than a 40% increase in price since the start of the war. Rising energy prices have also stoked inflationary fears and reduced expectations that the Federal Reserve will cut interest rates—which is stifling metals prices, as gold and silver typically surge following rate cuts. It is also believed that gold and silver are still facing safe-haven demand, but that demand isn’t lifting their prices because the metals are overwhelmed by other pressures. The U.S. dollar has also strengthened, which typically puts downward pressure on precious metals.