Silver and gold prices declined on Friday as renewed hostilities in the Middle East stoked fears of energy-driven inflation and potential Federal Reserve interest rate hikes, according to FX Street. Silver (XAG/USD) dropped 0.73% to near $59.50 during the European trading session, while gold (XAU/USD) also traded lower, heading for a weekly loss.
FX Street reported that the tensions have revived concerns over inflation and tightening by the Fed, contributing to the precious metals’ downward pressure. However, OCBC strategists Christopher Wong and Sim Moh Siong noted that gold saw some rebounds as oil prices eased, which helped alleviate inflation worries and Fed tightening fears, supported by a softer US Dollar.
For Japanese investors, these movements highlight the continued sensitivity of precious metals to geopolitical risks and US monetary policy, factors closely watched amid shifting global market dynamics.