Gold and Silver Prices Soar Amid Easing Energy-Inflation Fears

Gold and silver prices surged to their highest levels in over a month as easing energy-inflation fears led investors to believe that the Federal Reserve may avoid additional monetary tightening. Spot gold climbed 2.7% to $4,213.54 an ounce, its strongest level since June 22, breaking above both its 20-day and 50-day moving averages.

Silver outperformed, jumping 3.5% to $62.49 an ounce, its highest price since July 6. It broke above its 20-day moving average and approached its 50-day average, suggesting that the rally may be broadening beyond gold.

The gains followed growing optimism over a potential U.S.-Iran agreement and the possible reopening of the Strait of Hormuz. Markets interpreted this development as reducing the risk of another energy-price shock, which could ease inflationary pressure and lower the probability of further interest-rate increases.