Gold and Silver Prices Rise Amid West Asia Tensions and Fed Rate Expectations
Gold prices rose on Tuesday due to safe-haven demand fueled by ongoing tensions in West Asia. The COMEX gold price climbed 0.62% to $4,115.90 an ounce. Silver outperformed gold, gaining nearly 2% to $58.96 an ounce.
The uncertainty surrounding the conflict has boosted demand for safe-haven assets like gold as investors seek protection from geopolitical risks and market volatility.
However, expectations of higher US interest rates are limiting further gains in bullion prices. Markets currently assign a 65% probability that the Federal Reserve will raise interest rates at its September meeting.
New York Fed President John Williams said inflation is moving in the right direction but emphasized that policymakers would not hesitate to raise rates again if price pressures remain elevated.