Precious Metals Rebound on Lower Oil Prices and Easing Yields

The precious metals market is rebounding after the recent Federal Reserve rate hike. Spot gold prices are trading near $4,371.33 an ounce, up 0.67%, while spot silver prices are at $66.35, up 1.92%. The Fed raised its target range by 25 basis points to 3.75% to 4.00% this week and signaled that another increase remains possible.

The rebound is attributed to lower crude oil prices, easing Treasury yields, and a softer dollar. Oil prices are down for the third session, with Brent near $104 and WTI near $101, due to marginal progress on alternative routes rather than a resolution of the conflict in the Strait of Hormuz.

However, the market remains cautious, as unresolved Hormuz risk keeps a defensive bid under bullion and leaves the inflation channel vulnerable to another escalation. The bond market is also being closely watched, as it remains the cross-asset anchor.