US-Iran Tensions Escalate, Pressure Precious Metal Prices
US President Trump has indicated that he may launch new military operations in Iran, which could lead to increased tensions and pressure on precious metal prices. This comes as the US House of Representatives has passed a resolution demanding that the Trump administration cease war efforts against Iran.
The Iranian armed forces have reportedly simulated various scenarios of US attacks and are prepared to respond to a US ground invasion. In addition, the US Trade Representative's Office has announced new tariffs on dozens of countries and regions under the pretext of 'forced labor', which may impact global trade and commodity prices.
On the Shanghai Gold Exchange (SHFE), gold futures contracts fluctuated within a narrow range, while silver contracts showed a slight increase. The SHFE gold contract closed at 899.08 yuan/gram, down -0.01% from the previous trading day's close, while the silver contract closed at 14,614.00 yuan/kilogram, up 0.57%.
The US 10-year Treasury yield rose to 4.67%, and the spread between the 10-year and 2-year Treasury yields decreased by 0.01%. The gold-silver price ratio on the SHFE was around 61.52, down 0.58% from the previous trading session.
Gold and silver ETF holdings remained unchanged at 1,007.87 tons and 14,939 tons, respectively. Precious metal prices are expected to remain range-bound in the near term, with gold fluctuating between 860 yuan/gram - 920 yuan/gram and silver between 13,500 yuan/kilogram - 15,000 yuan/kilogram.