Dollar Dominates Gold and Silver Prices as Iran's Hormuz Demand Falls Flat
Iran's President Masoud Pezeshkian reiterated his country's demand for guarantees on free passage through the Strait of Hormuz at the United Nations General Assembly on September 23. He tied this guarantee to the end of US sanctions and the naval blockade. This is not a new demand, as Iran has already stated it several times in the past week.
The market barely reacted to Pezeshkian's statement, with gold trading near $4,269 an ounce and silver near $63.61. Oil prices did show a sharper reaction, with Brent crude swinging from an intraday low near $97.93 to a high above $103 after Saudi Arabia announced it would restart its East-West pipeline.
The real drivers of gold and silver prices today are the US dollar and the Federal Reserve's rate path. Stronger-than-expected US flash PMI data, hot inflation readings, and hawkish comments from Fed Governor Michael Barr have pushed up the odds of another Fed rate hike in October, which raises the cost of holding gold and silver.