Gold extended losses to around $4,575 for a seventh straight session as the Federal Reserve’s hawkish stance reduced demand for non-yielding assets, while rising oil prices and geopolitical tensions added inflation pressure. Silver fell below $69, with platinum near $1,870 and palladium around $1,380, all retreating amid profit-taking and fading expectations of near-term rate cuts.
Gold prices dropped to around $4,575 per ounce, marking a seventh consecutive decline and hitting a near six-week low. The move follows a hawkish stance from the Federal Reserve, which kept interest rates unchanged and signaled limited scope for near-term cuts. Higher rates reduce the appeal of non-yielding assets like gold, weighing on investor demand.
Geopolitical Tensions Provide Limited Support
Escalating conflict involving Iran added volatility, including missile strikes targeting key energy infrastructure in Qatar after earlier attacks on Iran’s South Pars gas field. While safe-haven demand typically supports gold, rising oil prices increased inflation concerns, offsetting bullish momentum.
Silver Extends Losses on Inflation Concerns
Silver fell below $69 per ounce, reaching one-month lows as the Federal Reserve’s stance and stronger oil prices pressured the broader precious metals complex. Market sentiment weakened further after data showed stronger-than-expected producer prices, reinforcing expectations of prolonged tight monetary policy.
Platinum and Palladium Update
Platinum futures declined to around $1,870 per ounce, while palladium fell near $1,380, both retreating from recent highs amid profit-taking and broader market weakness. Recent data also shows platinum and palladium have been volatile, with prices previously trading above $2,100 and $1,600 respectively earlier this month before pulling back.
Gold remains up roughly 12% year-to-date, but momentum has weakened as expectations for rate cuts fade and some investors liquidate positions to meet margin calls.
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