Gold, Silver Rally as Oil Rout Eases Inflation Fears
Gold rose 1.1% to $4,308.80 an ounce by 0950GMT, clawing back losses from the day before. Silver outpaced the move, climbing 1.2% to $63.97 an ounce—now up nearly 53% over the past year, well ahead of gold's 18%-plus annual gain.
The rebound tracked a pullback in crude prices, driven by reports that Saudi Arabia aims to restore roughly half the capacity of its East-West oil pipeline within days, with full operations expected to resume in about six weeks.
Crude sentiment got an added boost from US Energy Secretary Chris Wright, who said 18 million barrels of crude and petroleum products moved through the Strait of Hormuz earlier in the week.
Still, the rally in precious metals stayed in check after the US Federal Reserve raised interest rates and flagged another hike before year-end. The Fed lifted its federal funds target range by 25 basis points to 3.75%-4% on Wednesday—its first increase in three years.
Fed Chair Kevin Warsh said inflation pressures remained elevated, a view reinforced by data last week showing core US inflation climbed more than expected in August.
Rising rates tend to weigh on non-yielding assets like gold and silver, since they raise the cost of holding metals that generate no interest income.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
