Comex gold and silver futures extended their decline for a second straight session on Monday, July 13, as escalating tensions in the Middle East fueled concerns over persistent inflation and the prospect of higher US interest rates.
Gold futures dropped to $4,009, while silver fell to $57.82, continuing a downward trajectory that has now spanned four consecutive trading days.
Renewed geopolitical friction in the Middle East has pushed crude oil prices higher, with benchmarks surging over 4%, raising fears that energy costs could reignite inflationary pressures.
The sell-off in precious metals was driven by a combination of macroeconomic pressures.
Renewed geopolitical friction in the Middle East has pushed crude oil prices higher, with benchmarks surging over 4%, raising fears that energy costs could reignite inflationary pressures.
This dynamic has strengthened the case for a more hawkish Federal Reserve stance, increasing market expectations for an interest rate hike.
A stronger US dollar, bolstered by these rate-hike bets, further weighed on gold and silver, which are priced in dollars and offer no yield.