Precious Metals Rise Ahead of Fed Decision Amid Elevated Oil Prices

The price of gold and silver rose on Friday ahead of key economic data releases and a Federal Reserve decision. Gold reached $4,055 per ounce, up 0.16%, while silver traded at $58.31, a gain of 1.35%. The precious metals market is under pressure from elevated oil prices, which sustain inflation concerns and bolster Treasury yields.

Market positioning following major economic releases indicates less accommodative conditions than initially suggested by softer consumer and producer price figures. The European Central Bank maintained its deposit facility rate at 2.25%, main refinancing rate at 2.40%, and marginal lending rate at 2.65%.

The employment situation in the US appears robust, with initial jobless claims dropping to 187,000 for the week ending July 18, a level not seen since September 1969. However, hiring activity has slowed down.