Gold Edges Higher Amid Economic Data and Geopolitics
Gold and silver prices edged higher on Friday despite a stronger US dollar and Treasury yields. The precious metals sector steadied after Thursday's selloff, as traders assessed a stronger signal from the US labor market.
The European Central Bank kept interest rates unchanged at 2.25%, while the main refinancing rate remained at 2.40% and the marginal lending rate was held at 2.65%. The ECB focused on the intensity and duration of the energy-price shock.
Initial jobless claims fell by 22,000 to 187,000 for the week ended July 18, marking the lowest level since September 1969. This reinforced the view that layoffs remain historically low.
The situation around the Strait of Hormuz remained highly stressed, with transit through the waterway described as open but under active military and shipping pressure. US-Iran tensions focused on control of the waterway, while Houthi attacks on Saudi tankers in the Red Sea expanded shipping risks and complicated Gulf export routes.