Crude Oil Surge Drives Gold and Silver Down Amid Fed Rate Hike Expectations
Gold and silver prices declined amid rising crude oil prices, heightened inflation concerns, and expectations of a Federal Reserve rate hike. Gold settled down 0.28% at Rs 150,809, while silver fell 0.25% to Rs 232,118.
The surge in crude oil prices was driven by attacks on Saudi energy infrastructure and tensions in the Middle East, which reinforced inflation risks and expectations of monetary tightening. The Bank of Japan is also expected to raise rates on Friday, as persistent inflation and resilient economic growth increase expectations of further tightening by major central banks.
Crude oil settled sharply higher by 5.06% at Rs 10,209, driven by mounting concerns over tightening global supplies. Saudi Arabia closed a critical pipeline bypassing the Strait of Hormuz following a drone attack, while Iran reported that a supertanker caught fire after striking naval mines near the Strait of Hormuz.