Volatile Precious Metals Reflect Geopolitical Tensions Amid US-Iran Truce
Precious metals such as gold and silver are expected to remain volatile due to ongoing uncertainty surrounding the US-Iran truce, say market experts. The fragile ceasefire has had a mixed impact on crude oil prices, with Brent crude falling sharply after the announcement but recovering later in the day.
At the time of reporting, Brent crude was trading at around USD 91.93 per barrel, while US crude stood at USD 84.77 per barrel. Despite Monday's decline, Brent crude remains over 20% higher so far this month.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said the market viewed the truce as the first meaningful step towards easing tensions after two weeks of conflict.
Banerjee added that softer oil prices have eased inflation concerns, weakening the US dollar and bond yields, which has supported precious metals. Gold was trading at around USD 4,088.83 per ounce, with Banerjee expecting it to remain in the USD 3,950-4,200 range.