Gold Falls 1%, Silver Rises as Oil Prices Soar Near $100
Gold futures prices declined by 1% on Tuesday, September 8, as investors remained cautious due to inflation concerns and expectations of monetary tightening. The price of gold settled at $4430.10 per ounce, a decrease of $46.50 from the previous day.
The weaker dollar also supported silver prices, which rose by 0.38% to $66.297 per ounce. This increase is attributed to the reopening of US markets after a public holiday and the subsequent depreciation of the dollar.
Oil prices surged to their highest levels in several weeks, nearing $100 a barrel, as military attacks in the Middle East intensified and US President Donald Trump reiterated his commitment to preventing Iran from acquiring a nuclear weapon. This rise in oil prices has contributed to concerns about inflation and monetary policy tightening, which have weighed on gold prices.
Investors are awaiting US inflation data due this week, while markets continue to price in around a 60% chance of a Federal Reserve rate hike at its September meeting.