Gold and Silver Prices Under Pressure as Crude Oil Costs Rise

Gold and silver prices have been under pressure due to rising crude oil prices, increasing US Treasury yields, and expectations of higher interest rates by the Federal Reserve. The COMEX gold futures price has dropped 0.06% to $4,047.70 an ounce, while silver futures fell 0.26% to $57.905 an ounce.

Normally, geopolitical uncertainty would support safe-haven assets like gold. However, this time the surge in crude oil prices has shifted market focus towards inflation. Brent crude briefly crossed the $100-a-barrel mark after fresh attacks in the Red Sea and continued tensions involving Iran disrupted global markets.

Higher energy prices raise the risk of persistent inflation, reducing expectations of early monetary easing by major central banks. As a result, US Treasury yields have reached multi-month highs while strengthening the US dollar, both of which typically weigh on non-yielding assets like gold and silver.