Middle East Tensions Stall Precious Metals Recovery

The precious metals market experienced a sudden stall in its recovery as Middle East tensions intensified. The surge at the beginning of the week was followed by a sharp reversal on Thursday.

Oil prices have been rising, with crude oil testing the downtrend line near $92.00 per barrel. If the Houthis shut down the Red Sea, it could disrupt the flow of 4 million barrels of oil per day, potentially pushing prices above $100 per barrel and fueling inflation concerns.

The U.S. dollar has also strengthened as Treasury yields rise, reaching a new high for 2026 at just 30 basis points away from testing the 2023 peak near 5.00%. A breakout above this yield could create significant headwinds for precious metals.