Oil Price Surge Pushes Gold and Silver Prices Lower

Gold and silver prices fell on Monday, September 14, as oil prices surged by 4%, fueling inflation concerns and boosting expectations of a US Federal Reserve rate hike. Jateen Trivedi, VP Research Analyst at LKP Securities, noted that the upcoming Fed policy decision could keep gold under pressure with the possibility of a rate hike or hawkish commentary from the Fed chair.

The spot price of gold dropped 0.92% to $4,284.52 per ounce, while US gold futures fell 1.1% to $4,361.20. Spot silver prices decreased by 1.30% at $62.96 per ounce. The Bank of Japan is also expected to raise interest rates on Friday.

The surge in oil prices was attributed to fresh Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf, compounding supply concerns following the closure of a key Saudi oil pipeline. Brent crude rose 4% to $108.8 per barrel, while West Texas Intermediate (WTI) crude increased by 3.59% to $103.6 per barrel.