Precious Metals Rise on Weaker Inflation Expectations
Comex Gold prices rose for the second consecutive week, settling at $4,375 due to investors reassessing US monetary policy. The latest US CPI and PPI data showed contained inflation pressures, suggesting higher energy prices linked to the Iran conflict had eased in July, reducing expectations of an aggressive Federal Reserve stance.
The markets now see a one-in-three chance of a rate hike in September, but upcoming employment data next month and comments from Fed Chair Kevin Warsh at the Jackson Hole Symposium could influence expectations. This uncertainty is positive for precious metals like gold and silver, which have been benefiting from strong industrial demand and investment.
Comex Silver prices rose almost 2% last week as softer inflation data reduced the probability of a rate hike next month. However, renewed tensions in the Middle East could push energy prices higher and revive inflation concerns, creating uncertainty for precious metals.