US-Iran Tensions Send Gold to $4,417, Silver to $67.37 Amid Elevated Yields

Escalating US-Iran tensions sent investors flocking to gold and silver Wednesday, pushing spot prices higher despite elevated Treasury yields. Spot gold traded near $4,417.87, up 1.46%, while spot silver rose 2.46% to $67.37.

The move came as Brent crude surged past $100 a barrel and the US dollar weakened against major currencies. However, Treasury yields remained high at 4.81%, their highest level since October 25, 2023, which typically pressures non-yielding assets like gold and silver.

The US responded to Iran's attack on US warships in the Gulf of Oman late Tuesday by destroying five Iranian oil tankers. Markets are pricing a 60% chance the Federal Reserve raises rates by 25 basis points at its meeting on September 15-16.

Analysts describe the setup for metals as mixed, with higher crude prices and yields weighing against gold and silver but offset by safe-haven demand and uncertainty over Gulf oil supply. Gold is trading between support at $4,347 and resistance at $4,422, while silver has support at $64.73.