Precious Metals Rebound Amid Oil Price Slowdown
Precious metals saw a rebound on Thursday as the oil price rally lost momentum. This easing of energy-driven inflation concerns helped gold and silver recover from their previous session losses.
Gold rose by 1.1% to $4,308.80 per ounce after experiencing some losses in the prior day's trading. Meanwhile, silver gained 1.2% to reach $63.97 per ounce, representing a nearly 53% increase from its price one year ago.
The recovery in precious metals was fueled by reports that Saudi Arabia aimed to restore half of the capacity of its East-West oil pipeline within days and return it to full operation within six weeks. Additionally, US Energy Secretary Chris Wright's statement about 18 million barrels of crude oil and petroleum products passing through the Strait of Hormuz earlier in the week also contributed to a more positive sentiment.
However, gains in precious metals were limited as the US Federal Reserve raised interest rates by 25 basis points to 3.75%-4% on Wednesday. This increase signals another rate hike before the end of the year. Fed Chair Kevin Warsh noted that inflation remains elevated, while data released last week showed core US inflation rising more than expected in August.