Gold Slips Amid Diplomacy Hopes, Silver Holds Firm on Hawkish Fed
The price of gold has dropped by half a percent to $4,356 an ounce, while silver remains steady at around $66.44.
This unusual split in the precious metals market is due to two opposing forces: diplomacy hopes that ease war risk premiums on gold, and a hawkish Federal Reserve keeping real yields high, which supports silver.
The situation was triggered by US President Trump's comment about possibly meeting Iranian President Masoud Pezeshkian at the UN General Assembly this week, which reduced oil prices as it lowered war risk.
Brent crude has fallen for four consecutive sessions and is trading near $102 a barrel, its longest losing streak since June. However, gold followed a different logic, falling as lower war risk means less reason to fear inflation spikes from energy prices or hold gold as a geopolitical hedge.