Gold and Silver Prices Eased Amid Rising Oil Prices and US-Iran Tensions
The prices of gold and silver eased in early trade on September 9 as investors weighed renewed geopolitical tensions, a sharp rise in crude oil prices, and the outlook for US interest rates.
Gold was down 0.41% at $4,420.80 per ounce, while silver slipped 0.21% to $66.86 an ounce on the COMEX. The moves come as Brent crude rose 1.6% to $99.49 a barrel and West Texas Intermediate gained 1.72% to $94.63.
The latest rise in oil prices follows renewed military tensions between the US and Iran, which has raised concerns about disruptions to energy supplies and pushed crude closer to the $100-a-barrel mark.
For precious metals, the impact is more complicated, as geopolitical tensions can support demand for gold as investors seek safe-haven assets. However, a sustained increase in oil prices can also raise inflation concerns, which could affect expectations about how quickly the US Federal Reserve can lower interest rates.