Commodities
Silver Surges as Lower Oil Eases Inflation Concerns
Gold prices ticked up slightly while silver saw significant gains on Tuesday, as lower oil prices eased inflation concerns. However, gold's upside was contained by a firm US dollar and rising Treasury yields.
The Strait of Hormuz risk premium eased as Iran signaled it could reopen Gulf shipping if the US lifts pressure, and Saudi Arabia restored exports through its East-West Pipeline and Yanbu port.
Despite lower oil prices, which briefly fell below $98 a barrel, gold's safe-haven bid was partly offset by the market's view that even lower oil does not remove the Fed's inflation problem.
The US dollar index was slightly firmer, with futures pricing putting the probability of an October 25-basis-point hike near 53.1%.